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