How does group life insurance measure up?


Individual life insurance can be a valuable addition to group life policies, affording a family more protection.


Many Americans rely on group life insurance from an employer in the event of a death in their family. But in some circumstances, group life insurance is not enough, and an individual policy can provide more protection.

According to a 2017 study by LIMRA, a leading insurance and financial services trade organization, 43% of households without life insurance would have immediate trouble paying their living expenses with the loss of a primary wage earner. Even for households with life insurance, the figure increases to 50% having trouble with expenses following six months without a primary wager earner’s income.


Group life insurance plans are repriced every couple of years to account for changing demographics within the group, and product options and prices often do not make it clear whether you can take your policy with you if you leave employment or retire: “subject to certain conditions…” the policy may read.

Do you know the terms and conditions of your group life insurance?

Outside of a group setting, the product and pricing often look drastically different. Premiums may increase, or your death benefit or coverage period may decrease.


How many employers, human resource managers and employees know the cost and details of life insurance when someone is leaving a group plan? Generally, no concrete solution allows an individual to continue coverage under the group life insurance coverage after employment ends. The result: A former employee may have no life insurance protection.

Another unforeseen area with group life insurance is the possibility of coverage decreasing with age. It is not uncommon for coverage to be reduced when an employee turns 65 or 70 – yet another reason why individual life insurance plays a critical role in financial planning.


A voluntary life insurance program offers both simplicity and ease of administration within the workplace. Employees can experience low-pressure enrollment and have access to a qualified, independent life insurance agent. Look for a program offering policies that are individually owned by the employee and fully portable.

If you are a business owner looking to make quality life insurance available to your employees at no direct cost to you, please contact your local, independent life insurance agent to find out what is available.

Neither The Cincinnati Life Insurance Company nor its affiliates or representatives offer tax or legal advice. Consult with your tax adviser or attorney about your specific situation. For policy service and additional information, speak to an independent agent representing The Cincinnati Life Insurance Company. For a complete statement of the coverages and exclusions, please see the policy contract. All applicants are subject to underwriting approval. Products and riders available in most states.

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