With life insurance, you may pay your final expenses and provide financial support to your dependents. This insurance is valuable, and you should consider purchasing group term life insurance for five important reasons.
First, understand that group term life insurance describes an insurance product that’s available to a group. Many employers offer it to their employees to purchase when they start with the company or during open enrollment. The premium costs may be covered by your employer as part of your benefits package or you may pay it through payroll deductions.
This type of life insurance covers you for a set time. It includes a set death benefit that’s awarded to the beneficiary of your choice if you die before the term expires. Group term life insurance remains in effect until the term expires and as long as you remain employed with the company and pay any assigned premiums.
There are five good reasons to purchase group term life insurance, so consider them carefully as you decide if a policy is right for you.
- Afford Life Insurance
Because this insurance is offered to a group of people, it typically costs less than an individual policy, making it affordable for many consumers.
Provide for Loved Ones
The death benefit of a term life insurance policy goes to the beneficiary you name on the policy. They can use the money to pay your final expenses, cover their daily living expenses, repay debt or fund college or retirement. You may also name a charity or scholarship fund as the beneficiary.
- No Medical Exam Required
Individual life insurance policies often require a medical exam to prove that you are an acceptable risk. Group policies often do not have the same medical exam requirement, which means you are eligible for coverage even if you have a serious illness, disease or other high-risk factor.
- Boost Your Overall Life Insurance Coverage
You can own a separate individual life insurance policy and qualify to purchase group term insurance from your employer. Additionally, most group term policies allow you to purchase additional coverage on the policy. With these benefits, you boost your total life insurance coverage and provide additional financial resources to your beneficiary.
- Cover Family Members
Provide invaluable life insurance coverage to your spouse and children when you add them to your group term policy. Your dependents will not need to undergo a medical exam, and you’ll simply pay the extra premium through paycheck deferrals.
Protect your loved ones when you purchase life insurance. Group term life insurance is an excellent way to buy this valuable coverage, so ask your employer about it today.