Yearly Renewable Group Term Insurance
What Does Yearly Renewable Group Term Insurance Mean?
A Yearly Renewable Group Term Insurance is a life insurance policy that provides coverage for a group of people and is renewed annually. Typically, this type of policy is offered by an employer or another organization, such as a labor union, to its employees or members.
Insuranceopedia Explains Yearly Renewable Group Term Insurance
As part of a benefits package, an employer often purchases a yearly renewable group term insurance policy for its employees, typically covering most, if not all, of the premiums. Since the premiums are usually much lower, this can be advantageous for employees who lack coverage or sufficient coverage. When you leave your employer, you have the option to convert the policy to an individual one. However, conversion premiums may be higher for comparable individual policies, making it beneficial only if you are otherwise uninsurable.
