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How does group life insurance work?

What is group life insurance? 

Just like its name infers, group life insurance is coverage for a group of people rather than one sole individual. Companies often offer different types of insurance as a group to save on costs. When it comes to life insurance, group plans are common practice but also offer additional coverage plans each employee can add on ad-hoc at their own expense. Group life insurance plans are available to public and private companies, associations, or societies. 


This doesn’t mean that every employee has exactly the same coverage, but it does mean that the group is offered the same package from the start. By working with an insurance agency like Nickerson Insurance Systems, Inc. both the human resources expert purchasing plans and all the employees buying into the group life insurance plans can have their questions answered at any point during their coverage and beyond. 

Types of group life insurance 

The many types of workforce organizations with varieties of employees who each have their own needs go be met, there are also many different group insurance coverage plans. 



  • Group term life insurance: employers offer their employees a baseline life insurance plan for a certain amount of time, usually 10-30 years with the same premium as when they buy into the plan 
  • Supplemental group life insurance: options for employees to buy more specific addendums and offerings that work best for them
  • Dependent group life insurance: a plan that extends to spouses and dependents 
  • Permanent group life insurance: rather uncommon plans that extend the duration of the policyholder’s life
  • Accidental death and dismemberment: a benefit that kicks in if the holder is seriously injured and cannot return to work or dies on the job


  • Veterans life insurance: eligible veterans have access to their own life insurance policies depending on military service 



How does it work?

Individual life insurance policies require health history and assessments in order to determine coverage. One great benefit of group life insurance is that details remain personal as the insurance company is insuring the group as a whole. Again, group policies may not cover what employees need so meeting with an agent individually is important as well. However, it is in the company’s jurisdiction to change life insurance companies or remove life insurance as a benefit entirely, which is something to keep in mind when making the decision on how to be covered. 


Some things to consider when buying into group life insurance include your assets, finances, beneficiaries, and long-term plans. Since no one can predict the future and more specifically time and cause of death, there are ways to ensure that money is left behind for the people who matter most in one’s life. 

Shopping for group life insurance plans? Let Nickerson Insurance Systems, Inc. help you  

We pride ourselves on our many relationships with different insurance companies and knowing what will work best for you. By getting to know you, your company, or your organization we can easily help find what package works best for you and your group of employees.

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