What is group term life insurance?

Group term life insurance is a form of life insurance protection provided by an employer for its employees.

A group term life policy is usually issued for a period of one year, and renewable each year. The premiums are experienced rated, based on the company's deaths, and range of employees' ages.

If your employment is terminated, you may be able to convert your group term life insurance coverage to an individual permanent life insurance policy, which will cost you more money.

However, it must be noted that you do not automatically have the option to convert your group life insurance to an individual plan. A major drawback of these group plans is that many times you have to leave it behind if you change jobs. For that reason, you should always try to purchase your own plan if you are healthy.