Definitions and Vocabulary
There are so many different insurance products on the market these days that it can be easy to get overwhelmed. One of the insurance products people most frequently ask about is group term life insurance. While group term life insurance is its own distinct product, there are many similarities between it and other term life insurance products. There are, however, several important differences. This guide will look to set the record straight on group term life insurance.
Similarities Between Group and Other Term Life Insurance Products
One of the best ways to understand the group term life insurance definition is by understanding how it is similar to other term life insurance products. When you compare term life insurance products you’ll see that many have a number of aspects in common, and group term life insurance is no different. For one thing, the policy only lasts for a specified term, usually the time of your employment. Additionally, group term life insurance offers extra protection for your family while you are working, and, like other term life products, does not accrue equity or have a cash surrender value.
Differences Between Group and other Term Life Insurance Products
There are a few differences between group term life insurance and other term life insurance products. For one, usually your employer pays all or part of your group term life insurance premium. Another difference is that group term life insurance doesn’t usually cost as much as other term life insurance products. This makes group term life a great choice if you are looking for cheap term life insurance. It is also frequently renewable, meaning that it can be extended beyond its initial term. Between the cost savings and plan flexibility, it’s not surprising that so many employees and employers are interested in group term life insurance policies!
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