Archive · 24 Aug 2026
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.
Group term insurance is commonly provided by employers under a single master policy.
Individual term insurance is purchased directly and owned by the policyholder.
Group coverage, premiums, and benefit amounts depend on the employer-selected policy terms.
Individual plans generally offer more control over the sum assured, policy term, and riders.
Financial responsibilities, dependants, affordability, and employment continuity should guide the choice of cover.
- Who
- Employees and other eligible group members, employers, insurers, policyholders, and their nominees.
- What
- The article compares group term life insurance with individually purchased term insurance plans.
- Why
- To help people assess whether employer-provided coverage is sufficient or whether they need additional, longer-term individual protection.
- 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.