As you are probably aware, there are numerous types of life insurance the two basic ones being term and permanent. However, when it comes to the number of people who may take life insurance, there are also two basic types and these are group and individual insurance. These two are actually subtypes of term insurance and many people will be able to choose between two. So, let us see what the particulars of each of these are.
When it comes to group insurance, it is very convenient for some companies for example, when they want to insure their employees and they offer them some kind of term insurance as a benefit. In this case, this is called group life insurance since it covers a larger group of people. However, it is not completely free for the employees. Actually, it is deducted from the paycheck of an employee, but the person does not have to go through the usual tedious process of application and they only need to answer some questions about their health in the form of a short questionnaire.
So, there are some advantages of group insurance and of these is that it is quite easy to obtain it. You do not have to the insurance company; you may only sign up for it once you get a new job or at the annual period of enrollment. This is when you also sign up for some other benefits such as dental or medical. Further on, you do not have to undergo a medical exam. As mentioned before, a short health questionnaire with your medical history as well, is all that you need to submit. Another advantage of this type is that your premiums are automatically deducted from your salary and in this way you won’t even know that you are paying for it.
As for the individual insurance, as you may suppose, the policy only covers the life of one person. The owner of the policy is usually the person themselves or a member of the family. The process for applying and obtaining individual insurance is somewhat different from the group one. You will have to go through a medical exam of some kind, submit a medical history and the company will want to look at your medical record with your permission, of course. They will also want to check your driving offenses and criminal record if you have any.
However, individual insurance also has some advantages. For example, if you change your job, you will not lose the insurance. It may also have level premiums during the term and if you at any point wish to convert to a permanent, your policy will have more options than a group one would.
All in all, both these types have certain advantages and they are both convenient in certain situations. That is the reason why you should clearly define your aim and carefully decide which of these two would best suit your own position and which will bring you more benefits.