| One source of cheap life insurance is Group Life | | | | promoted as a company benefit. When |
| Insurance. This type of insurance is generally | | | | employees don't pay into their life insurance plans, |
| offered through your place of employment. | | | | their death benefits generally are equal to one |
| Because many individuals are covered under a | | | | year of salary. Sometimes a company offers |
| Group Life Insurance plan, the rates your | | | | more benefits to management or to union |
| employer offers tend to be very affordable. While | | | | employees. |
| Group Life Insurance may sound enticing, realize | | | | In the case where an employee has the option to |
| that the coverage being offered is usually not | | | | voluntarily contribute money towards the Group |
| going to be enough to meet the needs of you | | | | Life Insurance plan, death benefits generally are |
| and your family. | | | | much more substantial. When an employee |
| In other words, it might be necessary to | | | | contributes, it's usually also possible for the |
| supplement this cheap source of life insurance | | | | employee's spouse and child(ren) to get life |
| with another policy. | | | | insurance coverage under the Group Life |
| Two big assumptions | | | | Insurance plan. |
| How can an employer offer such cheap life | | | | Not only is it usually cheaper to get life insurance |
| insurance? Typically, the employer acts as the | | | | through a Group Insurance Plan, employees |
| owner of the policy and participating employees | | | | benefit in another way. They usually won't have |
| are considered the insured. Under this scenario, | | | | to take a medical exam. In other words, an |
| the insurance agency calculates its risks based on | | | | employee is insurable even if he or she has a |
| a "pool" of individuals. Agents start with the | | | | preexisting medical condition. |
| assumption that it is extremely unlikely all or even | | | | When you're looking for cheap life insurance, don't |
| a significant portion of the insured will die at the | | | | overlook your employer. It's a reliable source |
| same time. | | | | even if it's necessary to supplement this source. |
| The insurance company also assumes that not | | | | If you do decide to pursue this option, it's |
| everyone will work at that place of employment | | | | important to thoroughly understand the company |
| until retirement age. What that means to the | | | | policy as it applies to life insurance. In particular, |
| insurance company is that it will be covering the | | | | you want to know what happens to the policy |
| group for a shorter term than it would when only | | | | should you decide to voluntarily terminate your |
| insuring an individual. These two assumptions alone | | | | employment. |
| enable the insurance company to offer | | | | The policy typically terminates upon your |
| significantly reduced rates. | | | | departure; however, some company policies offer |
| How much do employees contribute? | | | | the option of continuing the Group Insurance Plan. |
| A company that offers group life insurance to its | | | | In this situation, employees should expect to pay |
| employees may offer participation in the group | | | | more out of pocket expenses. Even so, it's still |
| plan at no cost to employees. That's definitely | | | | going to be a cheap source of life insurance. |
| cheap life insurance! Life insurance in this case is | | | | |