We all know about individual life insurance policies. You can purchase an individual life insurance policy by meeting specific criteria. Group life insurance, on the other hand, is offered to a group of people together. One of the best examples is group life insurance being offered to employees at a company.

Many large companies offer group life insurance to employees as a part of the employee benefits package. The company pays the premiums too. The only problem with such a group policy is that the coverage remains applicable while you are an employee. You cannot take forward the policy once you quit that company.

Pros of Group Life Insurance

• There is negligible or no medical underwriting. With a group policy, you will get coverage without undergoing any medical exam or answering health questions.
• Since this is primarily an employee benefit, you don’t need to pay any premiums and get total coverage.
• Your employment is your eligibility. There are no eligibility issues in this case.

Cons of Group Life Insurance

• The coverage provided in a group life insurance policy might not be enough.
• This policy offers a false sense of security as the payout might not be enough.
• You will lose the group insurance policy on quitting the job. While some companies offer portability facilities, group insurance converts to individual insurance, the premium you must pay.

Even if you have group life insurance, consider having an individual life insurance policy. Understand your insurance needs, and then weigh the pros and cons.

Pros of Individual Life Insurance

• The policy remains valid irrespective of your location and position. Pay your premiums timely, and you will have a valid policy running.
• Get the term period and the coverage that you need.
• The rates are permanent. Premiums are low when you are young and healthy. It keeps on increasing with age.

Cons Of Individual Life Insurance

• You will have to pay for the premiums, low or high
• Your lifestyle and health decide the rate of the premium
• You might not get approval for the policy if you are a high-risk candidate
• Other types of insurance to consider

Apart from individual and group life insurance policies, there are other types of insurance policies too, which you can consider.

• Universal Life Insurance
• Whole Life Insurance
• Final Expense Insurance
• Variable Life Insurance