 |
Individual, Personal Life Insurance |
Group Life Insurance |
| Important note: |
This should be your primary coverage and more dependable |
Never to be used as primary coverage unless no other options are available because of health or other conditions. |
| Monthly Premium |
either similar or more if group plan is sponsored |
Free if sponsored by the employer |
| Face amount |
Availability is high |
Very limited |
| Convertibility |
Available. This is a very important feature. Particularly if your health changes or you just need longer coverage. |
Not usual |
| Potability |
Included. If you quit your job, your personal policy will not be affected. |
Not Included. A personal policy will be needed if the group cancels the master policy. If you loose your job, the policy gets cancelled. |
| Pre-existing health condition |
Many are OK |
usually not an issue |
| Long term level premium |
Available to age 120 |
Usually Limited to one year |
| No medical exam or underwriting |
No medical available |
Usually non-medical and very limited underwriting. Great plan if you have major health issues. |
|
Final note: If you are not able to qualify for personal insurance, it is highly recommended that you secure a personal individual life insurance and only consider your "free" group life insurance as a bonus to your beneficiaries. When financial planners calculate your needs, they never include group life insurance in the calculations unless no other coverage can be secured. |
