Term Life Insurance Generally, group term coverage is affordable, particularly for younger people.
In most cases, participants do not need to go through an underwriting process because every eligible employee is covered by default.
The majority of group plans, on the other hand, have rate bands in which the cost of insurance automatically rises in increments (for example, at ages 30, 35, 40, etc.) as opposed to individual term insurance plans, which typically lock in a rate for 20 to 30 years.
The employer’s plan document provides an outline of the premiums for each rate band.
Although group life insurance is inexpensive, the amount of coverage it provides may not be sufficient for many families.
Employers or association groups that provide insurance frequently restrict the total amount of coverage that is available to members or employees based on things like tenure, base salary, the number of dependents, and employment status.
Unlike with their own policy, participants cannot tailor group term coverage to meet their individual requirements.
