Group Life Insurance

Group life insurance is coverage provided to a defined group of individuals — typically employees of a company — under a single master policy held by the group sponsor (the employer). Employees receive certificates of insurance rather than individual policies. Coverage is generally term insurance, requires no individual underwriting, and premiums are often partially or fully employer-paid. The coverage amount is typically a multiple of annual salary (e.g., 1x or 2x). Group life is convenient and affordable but has significant limitations: coverage usually ends when employment terminates, the amount may be inadequate, and the policy is not portable (though some plans offer conversion rights).