Group Or Term Life, Which Is Better?

When it comes to group insurance, it’s a good thing if you are working, have an income, some job security, and group insurance that is a benefit for you. Group insurance policies are usually offered by the employer as a perk to the employees. It’s usually a win-win situation because the cost of the insurance is spread out over a group and not assumed by just one person. Of course being in a group insurance environment will also mean a good selection of benefits for the employee.

To put this another way, group insurance is one insurance policy that covers a group of people and it may also include employee’s dependents. The larger the group, the better the risk coverage, meaning when there are more people in the group the risk of claims is spread out. Everyone would pay the same premiums even if some of the members of the group have health conditions.

Other benefits of group insurance may include reduced absenteeism and increased productivity. The nice thing about this type of insurance is that over the past few years group insurance rates have dropped. This too is a benefit for the employer and workers, as the lower the premiums the company pays, the lower the premiums the worker pays. The key here is to know what kind of a group policy to choose.

The one major glitch with group insurance is that when you leave your job, coverage stops. If you leave because of a disability or illness, you won’t be able to get new insurance. However, if you happen to be fairly healthy and in good shape without any major medical problems, then an individual plan is likely better for you.

If you choose to go the route of individual insurance you have a variety of options ranging from term insurance for a fixed period of time to whole life, which is for your whole life. Term life is typically less expensive because there is no investment portion associated with it.

The important thing to note is that if you have questions, you need to be speaking to a highly skilled insurance broker who is intimately familiar with his products and can steer you in the right direction. You need a broker who not only knows how to listen to your needs, but acts on them and spends the time to carefully assess what would work for you. Ideally, your insurance broker needs to be someone who knows what it’s like to be overwhelmed with confusing information, but who takes the time to go through every detail of your insurance choice with you.

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