Independent article below providing information for guidance purposes only. Everyone has to make financial decisions from time to time. Whether it's choosing the right buy to let mortgage, or releasing equity from your home, planning for your retirement, life insurance, Expat / foreign Mortgage, currency mortgage or simply finding insurance for your property buy to let or residential, terrorism insurance, the sheer number of options can be overwhelming - never mind the jargon and sales patter all can add to confusion, but Independent Financial services GB endeavour to navigate you through the maze, to meet your needs and circumstances.
Group versus Individual Term Life Insurance
There are many perks that come along with secure employment. Along with job security and your salary, many employers also offer group life insurance plans as part of the benefits package. Group insurance policies are provided by the company / employer to their employees. The cost of such a policy is spread over a large group and can offer an array of benefits and savings to the members of the group.
Group insurance in other words is a single insurance policy that covers a specified group of people. These could include employees of a company or even members of professional organizations. The policies could also include dependents of the members. The idea behind a group policy is to have a larger group of people over whom the risk of claims is spread. While everyone pays the same premiums here, you could have members with different health conditions (some could have above average health and others might suffer from ill health).
Group insurance could benefit a company in many ways. It could reduce absenteeism in cases of illness, increase productivity, reduce overall liability of the company or organization and build up relations between employer and employee. Over the past few years, rates for group insurance have decreased significantly. Premiums are divided between the employer and employee but the choice of plan is made solely by the employer. Therefore, it is imperative to make sure that they are aware of what you need and take all possible aspects into consideration before choosing a group policy.
For those who have difficulty qualifying or getting coverage on their own, then a group policy is an excellent option. For those who have below average health, are older and need an insurance policy that asks no questions, a group policy is the best option. The one major drawback regarding group life insurance is that coverage stops when you leave your job. And in the unfortunate event that you have to leave your job due to a serious illness or disability, you will be unable to find new insurance at that point. Therefore, if you are young, relatively healthy and are looking for coverage for a guaranteed amount of time, an individual plan might be a better choice for you.
Individual insurance is a single insurance policy that covers only one person. Policies available could be term insurance (where the coverage is fixed for a specified period of time – ranging from one to thirty years) and whole life insurance (where the policy holder is covered for his/her whole life). Term life insurance is less expensive as compared to a permanent life policy as it has no investment benefits attached. Death benefits can be claimed to offset funeral expenses, pay off pending debts and look after the family’s expenses after the policy holder’s demise.
Differences between Group and Individual Insurance
Group policies are not based on individual health. Irrespective of factors such as health conditions, gender, age, etc. everyone in a group policy is grouped together in one category. This works in favor of those who suffer from ill health or who are older. But for those members who are young and still healthy, they might end up paying more than is necessary for their coverage. An individual term life policy for a non-smoking, healthy applicant could be up to fifty times cheaper than a group policy premium.
Group costs also tend to increase when a member enters the next age bracket and the rates are not guaranteed either. Individual term insurance can be fixed to remain level for specified periods of coverage. In case you leave your job or your employment is prematurely terminated, coverage in a group policy cannot be carried on to your next job and the costs to then convert to an individual plan can be prohibitive. Individual term life policies are usually guaranteed renewable. Depending on the type of insurance policy opted for; you could even tailor your plan to meet a host of specific needs.
At the end of the day, what is most important is that you take out an insurance policy – whether group or individual and thereby offer a secure future to your family and loved one. Depending on your individual situation and taking all key factors such as age, health, medical history and occupation into consideration, you should work in conjunction with your agent or insurance provider to reach a well-informed decision regarding what your best insurance policy option would be.
.About AccuQuote:
AccuQuote is a leader in providing term life quotes to people across the United States. In 1986 it began operating with a single goal: to make the process of buying term life insurance as easy as possible for its customers. Their experienced professionals consistently deliver the most affordable term life insurance rates by comparing thousands of life insurance policies from dozens of top-rated carriers.
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