Group Life Insurance: How It Works, Types, Pros & Cons
Definition of 'Group Life Insurance: How It Works, Types, Pros & Cons'
There are two main types of group life insurance: term life insurance and permanent life insurance. Term life insurance provides coverage for a specific period of time, usually 10, 20, or 30 years. Permanent life insurance provides coverage for your entire life, and it builds cash value that you can borrow against or withdraw.
The pros of group life insurance include:
* Lower premiums than individual life insurance
* Customizable coverage
* Easy to sign up
* No medical exam required
The cons of group life insurance include:
* Coverage may end if you leave the group
* The policy may be canceled if the group experiences financial difficulties
* The coverage may be limited
If you're considering group life insurance, it's important to weigh the pros and cons carefully to make sure it's the right choice for you.
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