Group Term Life Insurance
What Does Group Term Life Insurance Mean?
Group term life insurance is a life insurance policy offered to employees of a company or members of an organization. Typically, the employer covers all or part of the premium, or membership in the organization provides a discount on the premium.
Insuranceopedia Explains Group Term Life Insurance
As with all group insurance, group term life insurance is priced lower than individual policies. Additionally, unlike individual life insurance, the application process typically does not require medical testing.
If an employee wants coverage beyond what their employer provides, they can pay an additional premium for extra coverage. Coverage amounts may vary among employees based on factors such as seniority or salary range.
In the United States, group life insurance policies are not taxed by the government if the total coverage provided to an individual does not exceed $50,000.
