Breeden Benefit Group - An independent insurance agency uniquely qualified to meet group & individual insurance needs. Located in Austin TX

Group Life Insurance

What Is Group Life Insurance?

Group life insurance is offered to workers or members by an employer or another large-scale entity, such as an association or organization. It is inexpensive, free for certain employees, and common nationwide.

Key Takeaways:

  • Group life insurance is offered by an employer or another large-scale entity, such as an association or labor organization, to its workers or members.
  • Group life insurance is inexpensive and may even be free since many members pay into the group policy.
  • Some organizations require group members to participate for a minimum amount of time before they are granted coverage, which is generally basic.
  • Group life policies do not require individuals to complete a medical exam or underwriting.
  • Group life policy death benefits are generally limited.

Understanding Group Life Insurance

Group life insurance is a single contract for life insurance coverage that extends to a group of people. By buying group life insurance policy coverage through an insurance provider on a wholesale basis for its members, companies can secure costs for each employee much lower than if they were to buy an individual policy.

Those receiving group life insurance coverage may not have to pay anything out of pocket for policy benefits. Just as with regular insurance policies, insured parties must list one or more beneficiaries before the policy comes into effect. Beneficiaries can be changed at any point during the coverage period.