Is Group Term Life Insurance Enough?

Group term life insurance is a form of life insurance protection which usually is provided by an employer for its employees. Because the group term life insurance plan has so many contributors from employee, the policy often provides coverage for more services at a much lower cost per participant as compared to individual term life insurance policy.

Then the immediately question is whether it’s OK for you to only buy group term life insurance provided by company without buy any individual term life insurance policy?

Usually, a group term life insurance policy is issued only for a limited period, for example, one year, and then should renew each year. The premiums for group term life insurance policy are experienced rated, based on your company’s deaths, and range of employees’ ages. It should be highlighted that you may not be able to convert your group term life insurance coverage to an individual term life insurance policy if your employment is terminated, for example, you change to another company. It will depend on your health condition when your employment is terminated. You may be rejected or need exclude pre-existing disease even though you are willing to pay more money compared to group term life insurance policy. So it’s very important to have your individual lifer insurance policy to protect your family.