iQuanti: Group life insurance can give you basic coverage so that your loved ones are taken care of financially if you pass away. If your employer offers this type of life insurance, signing onto this policy is a great way to get affordable coverage. But if you haven’t had group life insurance before, you may be wondering whether you’re eligible. Let’s dive deeper into what group life insurance is, who can qualify for it, and the pros and cons of getting a group life policy. What is group life insurance? Group life insurance is any life insurance policy offered by an employer or a similarly-sized organization, such as a union or association. These life insurance policies usually function as term life policies, meaning they have a preset expiration date, but often come at a cheaper cost. Group life insurance allows your beneficiaries to receive a small death benefit payout if you pass away, which is often equal to about one to two times your annual salary. Your beneficiaries can use this payout to cover funeral costs, medical bills, and day-to-day expenses. Keep in mind that your group life insurance policy will only last as long as you are part of your company or organization. So, you won’t be able to take it with you if you change jobs. What employees are eligible for group life insurance? Different companies may have different requirements for their employees to obtain a group life insurance policy. Some companies may only allow full-time employees to receive group life coverage. Others may require employees to spend a preset amount of time at the company in order to get coverage. Be sure to discuss these requirements with your employer. It might be beneficial to purchase an individual life policy if you want coverage and know you won’t meet the standard requirements for a group life policy. The pros and cons of group life insurance Group life insurance policies come with upsides and downsides that you should consider when deciding whether to get coverage: Pros Group life insurance policies are typically very affordable — even free, in some cases — and may also be cheaper than an individual policy offered outside of your employer’s benefits package. Even if these policies don’t have everything you want, you could always consider opting in and getting an additional life insurance policy that will provide your family with even more security and coverage. Additionally, group life insurance often doesn’t require a medical exam. This means that employees who aren’t in good health may still easily qualify and get low-cost or free coverage. Cons While group life insurance options are more affordable, they may not be as flexible as insurance purchased outside your employee benefits. Since your employer offers these benefits, they can control the policy’s contract and, therefore, the coverage terms. For example, if you want an accidental death rider as a supplement to your insurance coverage, but your employer doesn’t offer the option to add riders, you may have to take out a separate policy. Another downside of group life insurance is that you typically can’t take the policy with you if you leave the company. So, those that are planning to change jobs soon may want to consider individual life insurance instead. The bottom line Group life insurance is a great option for many employees, but can come up short for those in need of more coverage and flexibility in the long run. Even if you qualify for a group life policy, only you can assess whether this type of life insurance is the right decision. By doing your research and weighing the pros and cons, you’ll take steps toward securing the best life insurance coverage for you and your loved ones. Source: iQuanti, Inc.