What Is Group Life Supplement For Low Cost Life Insurance?

By Patrick Cooper Posted in Life Insurance News



Group life insurance is usually offered by your employer. It can actually be quite inexpensive but make sure your look long and hard at your financial situation before you have it as your only source of life insurance. Most of these policies are owned by the employer. You may be asked to pay some of the premium or not. Therefore, in the short run they most certainly are cost effective.

Most policies, especially those that you receive as a “benefit” at no cost usually are for one year’s salary. If your group offers the insurance on a contributory basis, the coverage is usually better and more extensive. Some group policies also offer coverage for spouses and children so you may want to look into that if you are in the situation. Most of these group policies offer term life insurance policies that are in effect for as long as you work for the company. Premium rates for these policies are rarely locked in but change as the average age of the group covered changes.

What If I’m Not In The Best Health

Due to the fact that your employer actually pays for the policy most times you won’t have to undergo any sort of physical. These policies are something called “guaranteed issue”. This means just what it sounds like. You will be issued a policy regardless, it is guaranteed. There might be a few questions you have to answer but these are usually simple and about general lifestyle and health. Most of the voluntary policies require that you work for the company at least 20 hours a week.

If I Get One Of These Policies Do I Need Any Other Policy

The important thing to remember about these policies is that they are called supplemental for just that reason. They are a good SUPPLEMENT to your current policy. The fact that they are relatively low amounts means that they may not provide enough financial assistance if the main breadwinner of the family dies. Another thing about these policies that should cause you to consider carrying another policy also is the fact that if you lose or leave your job you lose the coverage the policy provides.

The main thing to remember is to really sit down and evaluate what your needs are financially. You will probably realize you can’t depend on one of these policies as you only source of life insurance, though they are great supplements to a private policy.

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