Companies sell life insurance polices to an individual or to a group. These plans are discussed below.

Group Policy

Large companies usually have provided life insurance to their employees in the contract terms and some of the employers also offer that additional life insurance can be bought in a group insurance policy. For this reason, sometimes, you are also allowed to get that group insurance policy from a group you belong to such as automobile club, or from a trade association or a union.

Advantages of Group Policy

Group policy has several advantages over individual insurance policy plans. These benefits of group insurance are as follows.

Low Rate

Since the policy is being purchased in a group therefore there is an offer of a low rate for certain death benefits. There are two reasons for the low rate. One is that the rate offer to the entire group is the average of all people included and it so happens that the people in the group are young and strong then you. The second reason is that the employer may subsidize the premium charged.

No Health Qualification

In group coverage the health qualifications are almost not applicable and any one can have a life insurance.

Premium charges

In a group insurance the premium charged from the group members is usually in the form of either deductions from the payroll in case of group coverage offered by employer or through the credit card bills and other payment options. These deductions are automatically made and so the chance of missing them is also lowered.

Term Insurance

The group policy that is offered by an employer is on term basis. In case you are leaving that employer then the state can allow you to change the policy to whole life. This insurance will be with the same company that is providing group policies to people. After the change the payments will be made to the company instead of the employer and your life insurance remains in affect. The benefit of this is that if you are old and health problems are developing then you can be able to get your self insured for your life and being in a group may even qualify without a medical exam.

Individual Policy

Individual policies as the name suggest is bought by a single individual from a company of his choice. The plan and the benefits are specific to his family needs. Individual life insurance can be bought form the company from whom you have bought your car or house. If you buy the insurance in this way then you may not get discounts or lower rates but you will have to work for all the payments with a single creditor.

Who sells them?

Usually, these policies are sold by brokers or individual agents. When insurance is bought form the agents then there is a load or a commission that has to be paid to the agent.

Other Ways of buying individual life insurance

In New York, Massachusetts and Connecticut the insurance can be bought from the savings bank. It can be bought from a fee only advisor or directly from a company without an agent involved.