The Difference Between Group Term Life Insurance and Individual Term Life Insurance

If you have a job and get life insurance through your employee benefits plan, you are insured through a group term life insurance policy which your employer provides for all employees.

However, there are some limitations to these plans. For example, if you are no longer working for your employer, the life insurance coverage does not remain with you, unless you convert the coverage into your own individual permanent life insurance policy which you pay for, and which costs a lot more than term life insurance.

In addition, if you are no longer employed, and you don't convert your coverage because it would be too expensive, you may find yourself without any life insurance. And, if your health has changed, you may be uninsurable, when you need it most.

Buying your own individual term life insurance policy outside of work will guarantee you protection for the life of your policy, whether or not you are employed.

Learn more about the differences between group term life insurance and term life insurance.