I just wanted to wish everyone a Merry Christmas from the Team! Have a great Holidays and think about the Team if you’re looking for life insurance resources in the new year. All the best to you and yours,

The Team

This is a guest article from Neil at Personal Finance World.

Group term life insurance is another type of life insurance cover, which the employers provide to their employees. It is an insurance contract that covers an entire group of people. It is also often provided as an employee benefits package. The policy generally is matured when an employee retires i.e. when he is around 60-65 years. The cost of such type of insurance policy for an employer is much less than what a person gets for an individual insurance cover. Such types of insurance policy are good if an employee does not have his personal policy or if his policy is inadequate. The employers usually pay most of the premiums of such policies, although a little employee contributions are also added to the premiums.

Group term life insurance coverage remains effective until the termination of employment of an employee or the term of the policy comes to end after a specific period. A person has the option to convert his group policy to an individual policy if he quits the employer. After the termination of service, the employer will no longer pay the premiums for the terminated employee. However, most people do not do such as the amount of premiums to be paid toward the individual coverage will be higher.

As with other types of group benefits, group term life insurance is normally cheaper than similar individual policy coverage. Hence, a group term life insurance policy is often considered as a better employee benefit package.