Group vs individual life insurance

Ownership

Group coverage belongs to the plan. The employer chooses the insurer, sets the amounts, and can change or end it. You're a covered member, not a policy owner.

An individual policy is a contract between you and the insurer. Nobody else can alter it.

Portability

Group coverage ends when the relationship does. Conversion and portability options exist but have short deadlines and often cost considerably more.

Individual coverage follows you through job changes, career changes, and retirement without noticing.

Amount

Group coverage is usually a salary multiple, often based on base pay alone. For a household with a mortgage and children, that's typically well short.

Individual coverage is sized to what you actually owe and what your family actually needs.

Underwriting

This is where group coverage genuinely wins. Guaranteed issue up to a limit means no health questions, which can be decisive for someone with a condition that makes individual coverage expensive or unavailable.

Individual coverage requires underwriting — and for most people in reasonable health, that produces a better price per dollar than group rates, particularly at younger ages.

How to combine them

• Take the free group coverage — always
• Own individual coverage sized to your actual obligations
• Compare supplemental group rates against individual quotes before electing; individual often wins if you're healthy
• If your health makes individual coverage hard, take every guaranteed issue amount available
• Know your conversion deadline before you ever need it