What’s the difference between group life and individual life insurance? | Blog
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The Sanford Group Insurance Blog

What’s the difference between group life and individual life insurance?

People often get group life insurance through their employers or various associations. Group life insurance is often a good supplement to individual insurance. If you’re searching for individual insurance in Ball Ground, GA, get to know the difference between group life and individual life insurance.


If you get insurance through your employer, you have group insurance. If you purchased insurance yourself, you have individual insurance. With group insurance, your employer shops for and negotiates insurance premiums. The employer also determines how much of the premiums you pay. For example, some employers pay the full amount of the premiums. Other employers might ask you to pay a certain percent of the premium. You also can get group insurance if you’re a member of some credit unions or association such as the AARP.


The underwriting process for group life and individual life is also different. With group coverage, underwriters determine risk level based on the risks of the group as a whole. The industry refers to this process as the experience approach. Conversely, when you apply for individual life insurance, underwriters factor in your personal lifestyle and health habits to determine your risk level. If you have a high-risk level, you’ll likely pay higher premiums.

Paying Premiums

If you have a group plan, your employer or association provides you with several plans from which to choose. By the time they offer these plans to you, they’ve already negotiated the premiums. They pay the insurer directly, but you pay your employer or association for your share of the premiums. If it’s an employer-sponsored plan, the employers often deduct premium payments from their employees’ paycheck. For individual policies, you need to research the plans yourself. You also need to pay the insurer directly. You can go to your employer for clarification if you have group coverage. However, with individual coverage, you need to become familiar with your coverage and benefits.

You never want to run the risk of not having enough insurance to protect you or your family’s future. Call us so that our experienced Canton or local life insurance agent can guide you on selecting appropriate insurance coverage.

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