Group life insurance explained

Group life insurance is coverage offered to members of a group, most often employees through their employer. It is convenient and often low-cost or free, but the coverage amount and portability are usually limited.

How it works

Employers frequently provide a base amount of life insurance, sometimes a multiple of your salary, at little or no cost. You may be able to buy additional coverage through the same plan.

The limits

Group coverage often provides less than a family actually needs, and it usually ends when you leave the job. Some plans let you convert to an individual policy, but the cost can rise.

Why a personal policy can help

Because group coverage is tied to your employer and capped, many people add an individual term policy they own and control, so their coverage does not depend on staying at one job.

Frequently asked questions

＋ Is employer life insurance enough?

Often not. Group coverage is usually capped at a modest amount and may be less than a family needs, so many people add an individual policy.

＋ What happens to group life insurance when I leave my job?

It usually ends when your employment does. Some plans allow you to convert to an individual policy, though the premium is typically higher.

＋ Should I rely only on group life insurance?

Relying on it alone is risky because it is capped and tied to your job. An individual policy you own provides coverage that does not depend on one employer.

Educational content only — not legal, financial, or insurance advice. Requirements and pricing vary by state.

Is your employer life insurance enough?