7 Important Facts to Consider about Group Life Insurance Policies

Many companies across the United States protect their employees with a Group Life Insurance policy. These group policies are usually part of the benefits package and are corporate-sponsored. In many cases, the business contributes significantly to the cost of these insurance policies. Group life insurance plans typically cover everyone in the group (employees) on a guaranteed basis.  When working for a corporation, group life can be a very affordable and viable option for the employees.  Insurance, david castillo dominici freedigitalphotos

Earlier this month, Bank of America announced that during the last quarter, they eliminated 2600 positions. As each former employee leaves the property for the last time, with a box filled with personal supplies, mementos, and pictures; one thing that is probably not in that box will be group life policy. What are the options as people leave corporate and start a new beginning?  

From the Investment Professor and Tactical Investment Advisors LLC, here are seven important facts about group life:  

  • Some group life insurance policies are portable; some are not.
  • Consider group life insurance plans as supplements to individual plans.
  • An employee typically has 31 days or less to convert to an individual plan.
  • Employees should research life insurance plans with an expert, that expert should offer more than one insurance company.
  • Work with a professional, experienced, independent advisor to assess the right path.
  • With professional advice, understand the basics of different types of life insurance offerings that are available.
  • Make the right life insurance decision based on facts and financial background.

Converting Group Life Coverage

Most corporations allow an individual to convert coverage to an individual plan, however conversion fees and premiums are typically higher than an individual policy purchased thourgh an independent insurance agent.

To understand the best direction to go financially, contact the Investment Professor to discuss your best after corporate insurance options.

Group plans do not allow individual customizations. They may not provide adequate coverage amounts needed for the individual. Many employees still purchase a separate policy to fortify the group policy.

It is important to remember that life insurance is an investment in the future. Each policy must be customized to fit the individual’s needs. Most individual policies are managed through an advisor who provides service, reviews, and guidance to the client. For most people, it is this relationship with the expert that makes the biggest difference.

Leaving a corporate position means leaving most benefits behind.  To understand the best direction to go and make a more informed decision about the best insurance plan, contact the Investment Professor to discuss your insurance and investment options.


For more information about life Insurance choices and your investment options contact:

Jason Soloman, The Investment Professor, Tactical Investment Advisors LLC
Phone: (980) 233-9770
Email: info@investmentprofessor.com
Address: 19825-B North Cove Rd #149, Cornelius, NC 28031

The information in this blog post is not intended as tax, financial, insurance or legal advice. Please consult a licensed professional for specific information regarding each individual situation. This post was developed and produced on a topic that may be of interest to the general public. The opinions expressed, and the material provided are for general information only and should not in any way be considered solicitation.

Photo: David Castillo Dominici, FreeDigitalPhotos  

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