What are the basic types of group life insurance?
The life insurance coverage provided by most group plans is one-year term. The plan comes up for renewal each year, and both the insurance company and the employer have the opportunity to consider whether to continue it. For the insurance company, it is also an opportunity to revise the rates. The employer is the policyholder and each covered individual is issued a certificate showing his or her certificate number. Some group plans include cash value insurance as an option. For example, some employers offer group universal life, which the employee can purchase by salary deduction. Some companies offer individual (non-group) insurance policies purchased at the place of employment. A representative of the company that provides the group insurance coverage is often available at the worksite to answer questions about the group coverage as well as review other family coverage. Additional personal insurance to fill gaps in insurance protection can be purchased at the employees option. Other
