Group term life insurance is a type of insurance policy that covers numerous people at one time. As the name itself suggests an insurance policy that is taken out on a group of people in order to reduce the risk is called group term insurance. The advantage of such insurance policies is that the premiums may be very low compared to the premium of a normal policy. Usually such policies are offered by employers to their employees.

• Such policies may have a very low premium but there is also a downside to it. The remuneration for such policies is comparatively less and may only last the beneficiary for a couple of years. However it is still advisable to get a group term life insurance if you are offered one by your employer and do not have any other life cover.
• In such type of insurance policies the employer or the providing entity keeps the actual insurance policy. All the people who are insured under the policy receive a certificate of insurance and the employers copy is known as the master policy. Just like any other policy group life insurance allows you to choose your beneficiary.
• Term insurance is the most universal type of group life insurance. Group term life is usually offered in the form of annually renewable term insurance. When group term insurance is provided through your company, the employer will compensate for most (and in some cases every single one) of the premiums. The amount of your coverage is usually equal to one or two times your yearly remuneration.
• Group term coverage stays in force until your service is completed or until the particular term of coverage ends. You might have the choice of changing your group coverage to an individual policy if you leave your company. However, the majority of people decide not to do this since these conversion premiums can be much higher than premiums for comparable policies available to individuals. Usually, only those who are otherwise uninsurable take advantage of this conversion opportunity.

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