Group Life Insurance coverage vs. Particular person Life Insurance coverage
However how do you even know if in case you have a gaggle coverage? What’s the distinction between group life insurance coverage and an everyday coverage?
Particular person insurance policies cowl a single individual, whereas group life insurance coverage covers a gaggle of individuals, usually individuals who work for a similar employer. When you didn’t get your protection by way of work, you’ve got a person coverage. For instance, if you happen to purchased it from an area agent or a web based dealer (that’s us!), you’ve got a person life coverage.
Particular person insurance policies are priced based mostly on private particulars together with your age, your health, your life-style, and your loved ones historical past. They are often designed to offer a certain quantity of protection for a sure time frame, or to offer lifelong protection. Protection is available in a variety of quantities, from a number of thousand {dollars} to multi-million greenback polices. And though you bought to this web page by asking, “Is group life insurance coverage taxable?”, we will inform you that particular person insurance policies are just about by no means taxable.
Group life insurance coverage insurance policies, alternatively, present a small, set quantity of protection for all members of the group. That group could be all the workers of a specific firm or employees’ union. The phrases of the coverage are often decided by the employer. For instance, your employer might select a regular protection quantity – $25,000 or $50,000 – to supply to anybody who works for the corporate.
Abstract: When you obtained it by way of work, it’s a gaggle coverage; if you happen to purchased it from an agent or on-line, it’s a person coverage.
