Group Life insurance is policy that insures a group of people. Its a type of insurance in which a group of people are covered- if you are part of the group.

Group Life Insurance is often provided by employers as an employee benefit because it is an economical way for employers to provide a quality benefit that employees value. Employees can usually be insured without medical examination as a group of people under a master policy.

The amount of coverage can vary from $10,000 to $100,000. Coverage ceases at the age of 70. Upon the termination of employment, the insured employee may continue coverage through an individual term policy without evidence of insurability for as long as the insured person continues to pay premiums.

Full-time employees may purchase additional life insurance for themselves, their spouse and eligible dependent children and have premiums deducted from their paycheck.

The advantages to Universal Life Coverage are the policy has the potential for cash value to earn more than the minimum interest rate. Also the premium amounts and death benefits are flexible. You may be able to change the amount of your payments or your death benefit after you buy the policy. You can also increase your coverage by paying larger premium but you will be required to answer health questions or get a physical to increase the benefits on your policy.

It is possible that the cash value could grow faster than is needed to pay the cost of insurance. In most cases the policy holder can choose how that money is used. Talk to your agent about the options that are available.

Your Universal Life Insurance policy has 2 death benefit options:

1. Level death benefits is equal to the policy’s face value

2. Increasing death benefit is equal to the policy’s face amount plus the policy’s account value. The premiums will be higher for option 2.

Read and understand your policy.

This policy builds cash value and the policy holder can use the cash value to get a policy loan. The loan can only be for the amount up to a percentage of the policy cash value. The loan of course will accrue interest. Note though that if the loan plus interest amount exceeds the cash value, the policy will expire with no value.

The advantage of a Whole life insurance policy is that the policy can return money to the policy holder in the form of dividends, if the company earns a surplus because of profitable operations. Since earnings such a surplus depends on many variables, dividends are never guaranteed.

There are different type of Whole Life Insurance. The most common types are:

Joint Whole Life- provides basic whole life benefits, but two lives are insured under the same policy.

Last Survivor Whole Life-a Joint whole life, designed mainly for married couples.

Universal Life- the policy holder can choose your policy’s face amount and premium and to change these factors while the policy is in effect.

Adjustable Life- allows the policy holder to vary the coverage as insurance needs change.

Indeterminate Premium Life- specifies 2 premium rate- a guaranteed maximum and a lower rate you actually pay. Your premium can never be more than the guaranteed maximum.

Interest Sensitive Whole life- similar to indeterminate premium life, but taken a step further as cash value can increase beyond the state guarantee if economic conditions warrant.

If the insured person dies during the term, the death benefits will be paid to the beneficiary. It is the most inexpensive way to purchase a death benefit on the coverage amount.

Because Term Life is a pure death benefit, its use is to provide for covering financial responsibilities to the insured such as: to cover consumer debt, dependent care, college education for dependents, funeral costs and mortgages.