1 week ago

Group or Individual Term Insurance: Choosing the Right Cover

Group term insurance is life insurance offered to people in a group, often by their employer.

The employer owns the main policy, and employees receive cover while they remain eligible.

An individual term plan is bought directly from an insurer.

The person who buys it owns the policy and chooses its coverage and duration.

Group insurance may be cheaper or partly paid by the employer, but it can be linked to the job.

Individual insurance can continue even if the person changes employment, as long as premiums are paid.

People should consider family expenses, loans, future responsibilities, and existing employer coverage.

Some people may use both types of insurance to get enough protection.

Key facts

Group policy owner: The employer or group entity acts as the master policyholder.
Individual policy owner: The person who purchases the plan owns the individual policy.
Group eligibility: Coverage is available to eligible members under the group policy.
Coverage flexibility: Individual plans generally allow greater control over the sum assured, policy term, and available riders.
Employment link: Group coverage depends on continued eligibility, while an individual policy is not tied to employment with a particular organisation.
Premium payment: Employers may pay all or part of group premiums; individual policyholders generally pay their own premiums.
Key considerations: Family expenses, loans, dependants, future commitments, affordability, and existing insurance coverage should be reviewed.

freepressjournal.in · 1 week ago