Group Term Life Insurance vs Individual Life Insurance

Group Term Life Insurance Vs Individual Term Insurance: Know the Difference

Deciding between various life insurance options can be taxing as you would want to opt for the best. Often the cause for confusion can be choosing between group insurance and an individual term insurance plan. If your employer is already providing you with a group life insurance policy, then the obvious question points towards the need for an individual plan.

To help you understand both these insurance policies in detail, let’s explore the difference between group life insurance and term life insurance. This shall enable you to find out if you really require a personal term life insurance for better coverage.

What is Group Term Life Insurance?

Group life insurance is a policy offered by the employer of an organisation to its employees as an added incentive. Here, the employer of the company is the owner of the insurance policy with numerous employees secured under it.

The insurance plan is meant to provide financial support to your family in case of an unforeseen event. If you opt for group term life insurance provided by your employer, the policy won’t require any medical verifications, and the premiums would be affordable.

However, you must also understand that group life insurance plans are available as long as you are employed with the said organisation. If you were to switch jobs, your term insurance coverage would end with no assurance that the next employer would offer you insurance.

What is Individual Term Life Insurance?

An individual or personal term insurance plan is a type of policy that enables you to safeguard your loved ones in your absence. In case something were to happen to you, the insurance provider would pay out the sum assured to the beneficiary of the plan.

Unlike group term life insurance, you can personalise your individual insurance policy based on your needs. Be it the policy period, rider benefits or the coverage amount, personal term insurance helps you customise these aspects without any trouble.

Depending on the reason for buying term insurance, you can choose a suitable policy tenor that can range from 5 to 30 years! So, if you have any pending debts or want to financially protect your dependents during retirement, you can select a policy term accordingly.

Difference Between Group Life Insurance and Term Life Insurance

Here’s a comparative view of group life insurance vs individual term life insurance based on various factors:

Over to You!

Now that you know how individual term life insurance offers much more coverage than group insurance, you can financially secure your dependents. Due to the uncertainty of life, term insurance is an essential backup against the risk of death. So, before opting for it, estimate the premium price for a policy with our term insurance premium calculator! Furthermore, you can browse through the term insurance plans available at Bajaj Markets to enjoy maximum coverage.