Group Universal Life Insurance

When You Need Group Insurance You Can Depend On

When Group Insurance Is Used

Group universal life insurance is a type of policy that is usually offered by your employer. Sometimes this is a benefit from the employer, wherein the premiums are paid as a part of your benefit package. Otherwise, you as the employee pay the premiums, as part of the group plan. Usually group universal life insurance is not the only insurance someone will have. While a group plan will often involve discounted rates or rates that your company will pay for, the group plan cannot be totally depended upon. A lot can change with your group universal life insurance plan, mostly because this type of plan is, for the most part, out of your hands. If somethings was to go wrong with the company or you left, your would be out of the group and out of coverage.

Group Insurance vs. Individual Insurance

Let's look at how group universal life insurance compares to other individual insurance plans. With group universal life insurance, your coverage will end if you leave your job or the group, while on an individual policy if you switch jobs or leave the group, you will not lose the coverage. Another aspect of group life insurance is the fact that usually group universal life insurance has less flexibility than another policy. The future is rather uncertain with group universal life insurance. In a group universal life insurance the premiums for your policy can be changed for any reason if the company decides to increase the premiums for the group. You are part of a group contract, and that contract has the possibility of being cancelled by the issuing life company if they choose. Alternatively, with an individual policy, you have to pay set premium rate that is usually guaranteed in advance by your insurance company, and they cannot decide to change it at their whimsy. The insurance company has no power to cancel your insurance, only you as the policy holder can. Also, an individual policy is completely portable, and you don't depend on one specific institution for your policy to stay intact.