Join an Association and Gain Access to Group Life Insurance

While group life insurance policies have been declining for the last decade, it offers various benefits you can’t find in individual life insurance policies.
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Group Life Insurance

Written by Brian Greenberg
CEO / Founder & Licensed Insurance Agent

Last updated: March 20th, 2023

Reviewed by Lisa A Koosis
Medical Claims Specialist

What Is Group Life Insurance?

Group life insurance is a type of life insurance coverage in which a group is the master policyholder of an insurance contract, and certificates of insurance are issued to participating individual members.

These insurance policies are most commonly offered by employers to their employees as a free or optional benefit. Entities such as organizations, trade groups, and associations also can offer group life insurance to their members.

It is available to people of all ages, and there are few health questions, if any, that must be answered in order to qualify. Term and whole life policies may be available, depending on the group.

Example of Group Life Insurance

When Should You Get a Group Life Policy?

When coverage is offered for free

When group life coverage is offered as a free benefit – in this case, there is no reason to pass it up.

For inexpensive supplemental coverage

Group life insurance is a benefit and should not be the only life insurance coverage you have. It is recommended that you have individual life insurance, and a group life policy as additional coverage.

Since the risk of a claim is spread out among a large group, coverage costs are low for participants. Optional group coverage may or may not be a good financial decision. For those in good health, it is often cheaper to purchase an individual life insurance policy than to spend money on group coverage.

When you cannot qualify for individual life insurance

If you under 50 years of age and cannot qualify for individual life insurance, group coverage may be the only way to obtain life insurance.

Since there are few health questions that must be answered to qualify for group life coverage, this type of insurance is an option for people with health conditions such as:

  • Cancer
  • Schizophrenia
  • Immune disorders
  • Heart disease
  • Diabetes

Group Life Insurance Pros and Cons

What we like

More affordable than traditional policies

The risk to the insurance company is spread out among many participants in group plans. Group life insurance is often free for qualifying employees and group members.

It’s easy to qualify for group insurance

Group life plans have few health questions to qualify. Some plans have no health questions. The more coverage you apply for, the more health questions.

Fast approval

Applications are one or two pages, and they are active when the policy is processed by the insurance company. How fast this happens depends on the group and insurance company issuing the certificates. If you apply online, your policy may be active the moment you sign and date the application.

Full coverage from day 1

group policies do not have waiting periods for the full coverage amount to be available to beneficiaries. Some final expense whole life policies have a two-year waiting period for the full coverage amount is available.

There is no need for a medical exam

Medical exams cost insurance companies money. For small group life plans, the risk to insurance companies is small, so exams are not required. Typically the application is the only requirement to qualify.

There is no financial history check

When coverage amounts are small, insurance companies do not run financial risk assessments. Risk assessments cost the insurance company money are not required. As you increase your coverage amount, the insurance company may require this qualification requirement.

There are no height and weight requirements

Individual life insurance policies use build charts as one of the factors in determining the cost of a policy. Group life plans don’t have health classes so there is no need for height and weight requirements.

What we don’t like

It’s possible to lose the coverage if

  • You leave the company or group
  • The group drops the benefit
  • The company or group closes

You are not the owner of the policy

As with group life insurance offered through an employer, the association is the ultimate policyholder. The association holds the master policy, and issues certificates of insurance to its members. While a certificate of insurance is valid proof of having a life insurance policy, you are not the owner of the policy.

Premiums may increase

If the premiums aren’t guaranteed and the group experiences too many claims they can raise the premiums. Another way the premium could increase is if the plan offered is a “banded term policy in which the premiums increase every five years.

Coverage may decrease:

This happens when the premiums are guaranteed, but the coverage isn’t.  As you age, the risk to the insurance company increases. When you reach a certain age, typically 60 years old, the coverage amount begins to decrease every year.

Coverage is less compared to traditional policies

Group life is easier to qualify for than fully underwritten individual policies. Since there are so few health questions, the insurance company lowers its risk by offering low amounts of coverage.

Difficult to service

The insurance company does not handle general services like updating billing or beneficiary changes. Instead, service is often handled by the master certificate holder. This can cause confusion when the plan administrator is not a licensed insurance agent.

Group term life insurance

Group term life insurance explained

Group term policies with 5 year coverage periods. Every five years the cost of the coverage increases.

Group whole life insurance

Group whole life insurance explained

Group whole life policies with guaranteed level premiums where the coverage amount decreases after age 65.

How to Join a Group or Association

There are many types of groups and they all have different requirements for becoming a member.

Some charge membership fees or have participation requirements for its members.

Some associations that offer the best group life insurance:

Another way to find potential groups/associations is a google search for membership life insurance benefit

Access to groups and associations is a way to get access to insurance products and rates that are not possible for individuals.

Things to ask before becoming a member of a group

  • What are the requirements to become a member?
  • What are the requirements to stay a member?
  • Is the life insurance product portable?
  • Who is the carrier issuing the insurance products?
  • What is the financial rating of the insurance company?
  • Can I see an illustration of the policy that shows the guaranteed premiums and coverage?

Group Life Insurance Statistics

Group life insurance policies have been declining for the last decade

Depending on your personal situation, the pros can far outweigh the cons. Especially for individuals who would have a tough time qualifying for an individual life insurance policy, due to their health. Yet, group life insurance popularity has been declining for the last decade. Why?

This could be largely due to the fact that fewer employers are offering group life insurance through work. Many individuals aren’t aware that they can join a group or association that offers this type of insurance on their own.

Of individuals who have life insurance in general, 55% of people have an individually owned life insurance policy, which is still the most popular choice by far. One in four individuals (27%) have group life insurance only.

Lastly, 18% of people who have life insurance, have both an individual and group owned policy.

Largest group life insurance companies

CarrierIn Force Life PremiumA.M Best Financial Rating
MetLife3.5 billionA++
Prudential1.6 billionA+
Cigna1.2 billionA
Securian1.1 billionA+
The Hartford875 millionA+
Unum450 millionA
Liberty Mutual320 millionA
The Standard310 millionA
Lincoln Financial Group270 millionA+
Reliance Standard105 millionA+

Source: http://www.ambest.com/

Get Group Life Insurance

Speak with an independent life insurance agent to discuss your options.

Group Life Insurance Reviews

4.9 /5
Based on 43 reviews

Excellent
88%
Great
12%
Average
0%
Poor
0%
Bad
0%
Jun 16,2021
Charles Morehead Verified
,OK
I obtained a valuable policy with great ease. My agent Nikki Walker was both friendly and professional. I throughly enjoyed my experience...
Company:
America's Consumers and Affiliates
Product:
TransElite Universal Life
Policy length:
Whole Life Life Insurance

Jun 11,2021
Nathan Collins Verified
Pelson,AR
I had a very good experience.
Company:
America's Consumers and Affiliates
Product:
TransElite Universal Life
Policy length:
10 years

Apr 28,2021
David King Verified
Laurel,MD
Very easyto fill out.
Company:
America's Consumers and Affiliates
Product:
TRANSSELECT Term10
Policy length:

Apr 17,2021
Amoria Bird Verified
,NC
Super helpful without the drawn out over explanation of the choices I had for coverage options!
Company:
America's Consumers and Affiliates
Product:
TransElite Universal Life
Policy length:
GI Universal Life

Apr 04,2021
Saysana Lokaphone Verified
,NJ
He is very nice and helpful We ca count on him, also he is respectful
Company:
America's Consumers and Affiliates
Product:
TransElite Universal Life
Policy length:
GI Universal Life

Apr 02,2021
Linda Carter Verified
Richmond,VA
It was an excellent experience
Company:
America's Consumers and Affiliates
Product:
TransElite Universal Life
Policy length:
GI Universal Life

Mar 29,2021
Pulin Patel Verified
Cartersville,GA
Jenn made it b ery easy to apply over the phone.
Company:
America's Consumers and Affiliates
Product:
TransElite Universal Life
Policy length:
10 years

Mar 12,2021
Robert Snow Verified
,CA
Got what I needed at a reasonable price.
Company:
America's Consumers and Affiliates
Product:
TRANSSELECT Term10
Policy length:
10 year

Mar 08,2021
Deisha Angel Verified
,NC
Efficient and Effective!
Company:
America's Consumers and Affiliates
Product:
TransElite Universal Life
Policy length:
GI Universal Life

Mar 01,2021
Mary Sherlock Verified
North Augusta,SC
It was wonderful!!! We highly recommend you guys to my friends
Company:
America's Consumers and Affiliates
Product:
TransElite Universal Life
Policy length:
Guaranteed Acceptance Life Insurance

Feb 17,2021
Joanne Febbraro Verified
Douglaston,NY
Nikki was very knowledgeable and explained everything clearly. It was a pleasure to work with her. I would highly recommend Nikki! 5 Stars!!
Company:
America's Consumers and Affiliates
Product:
TransElite Universal Life
Policy length:
GI Universal Life

Feb 04,2021
Ramon Gastelum Verified
,AZ
Our experience was great. Daniel was very informative, and knowledgeable. Very great Insurance agent!
Company:
America's Consumers and Affiliates
Product:
TransElite Universal Life
Policy length:
GI Universal Life

Jan 07,2021
Eddie Vanderhorst Verified
Austin,TX
Apply for life insurance was confusing at first because of the different qualifications. However I applied for an insurance that was able to meet my needs. It was a easy process and the turn around time from an agent was very quick.
Company:
America's Consumers and Affiliates
Product:
TRANSSELECT Term10
Policy length:
10 years

Dec 16,2020
Michelle Charles Verified
,NY
professional and informative
Company:
America's Consumers and Affiliates
Product:
TransElite Universal Life
Policy length:
GI Universal Life

Dec 08,2020
La'mike Lundy Verified
Atlanta,GA
Very easy and very simple
Company:
America's Consumers and Affiliates
Product:
TransElite Universal Life
Policy length:
Guaranteed Acceptance Life Insurance

Dec 05,2020
Bobby Staggs Verified
Soper,OK
Excellent service and great explanation on the process
Company:
America's Consumers and Affiliates
Product:
TransElite Universal Life
Policy length:
Guaranteed Acceptance Life Insurance

Dec 01,2020
LasChae Dickerson Verified
Gretna,VA
Nikki was very helpful locating and informing of various options. She remained involved and guided me throughout the process. I was very pleased and will be recommending her to others!!!
Company:
America's Consumers and Affiliates
Product:
TransElite Universal Life
Policy length:
Guaranteed Acceptance Life Insurance

Nov 21,2020
Thomas Ginyard Verified
Flint,MI
My experience was nothing but positive
Company:
America's Consumers and Affiliates
Product:
TransElite Universal Life
Policy length:
GI Universal Life

Nov 17,2020
Jason Losure Verified
Paso Robles,CA
Great service and follow up!
Company:
America's Consumers and Affiliates
Product:
TRANSSELECT Term10
Policy length:
10 years

Nov 11,2020
Angela Huff Verified
,GA
I had a great experience applying for life insurance!The process was easy to understand!
Company:
America's Consumers and Affiliates
Product:
TransElite Universal Life
Policy length:
GI Universal Life

Nov 02,2020
Jeremy Cash Verified
Mesquite,TX
Jens always great, she answered every question I had
Company:
America's Consumers and Affiliates
Product:
TransElite Universal Life
Policy length:
Guaranteed Acceptance Life Insurance

Oct 16,2020
Ariel Wheeler Verified
Manassas,VA
Nikki was great to work with! She helped me find coverage to best suit my needs.
Company:
America's Consumers and Affiliates
Product:
TransElite Universal Life
Policy length:
10 year

Oct 14,2020
Kiwana Burks Verified
,AZ
Very efficient and superb professionalism across the board. You won't regret trusting them with your services!! I'm insuring both my mother and myself. Wouldn't trust just anybody with such an important purchase.
Company:
America's Consumers and Affiliates
Product:
TransElite Universal Life
Policy length:
GI Universal Life

Oct 14,2020
Derrick Murphy Verified
Aurora,CO
Application process was not too difficult and Jennifer was helpful throughout.
Company:
America's Consumers and Affiliates
Product:
TransElite Universal Life
Policy length:
Guaranteed Acceptance Life Insurance

Sep 24,2020
Sergio Leu Verified
,CA
Cheryl was awesome, gave me the perfect insurance I needed
Company:
America's Consumers and Affiliates
Product:
TRANSSELECT Term10
Policy length:
10 years

Sep 24,2020
Wayne Chiles Verified
,NC
Great people all the way around
Company:
Independent Order of Foresters
Product:
TransElite Universal Life
Policy length:
30 year

Sep 24,2020
John Demitros Verified
,NJ
Daniel was very helpful in finding the right coverage for me thank you Daniel God bless
Company:
America's Consumers and Affiliates
Product:
TransElite Universal Life
Policy length:
GI Universal Life

Sep 24,2020
Jennifer Rawle Verified
,NC
It was easy and knowledgeable.
Company:
America's Consumers and Affiliates
Product:
TransElite Universal Life
Policy length:
GI Universal Life

Sep 24,2020
Anthony Milligan Verified
,MI
Great service and prices
Company:
America's Consumers and Affiliates
Product:
TransElite Universal Life
Policy length:
GI Universal Life

Sep 24,2020
Sophie Demitros Verified
Bordentown,NJ
It was truly enlightening Daniel was very pleasant and easy to get along with any made things very easy to understand thank you Daniel God bless you
Company:
America's Consumers and Affiliates
Product:
TransElite Universal Life
Policy length:
GI Universal Life

Sep 23,2020
Joseph Asbury Verified
,WV
Great friendly service .
Company:
America's Consumers and Affiliates
Product:
TransElite Universal Life
Policy length:
Guaranteed Acceptance Life Insurance

Sep 23,2020
Eugene Campbell Verified
Lula,GA
Jennifer Plisch was an expert customer servant!! She knows her products and shares them with honesty. She and her team were receptive to many inquiries! Their positive, helpful, and upbeat attitude, creates a low-stress atmosphere!!
Company:
America's Consumers and Affiliates
Product:
TransElite Universal Life
Policy length:
Guaranteed Acceptance Life Insurance

Sep 14,2020
Ronald Tyus Verified
,DC
Application process was seamless. Everything went smoothly and exactly as described by Dan. Zero complaints. 5 stars!!!
Company:
America's Consumers and Affiliates
Product:
TransElite Universal Life
Policy length:
GI Universal Life

Sep 10,2020
Adam Bart Verified
,OH
Very quick and easy process.
Company:
America's Consumers and Affiliates
Product:
TransElite Universal Life
Policy length:
GI Universal Life

Sep 10,2020
John Leahy Verified
,CA
Good so far no issues Dan was great Very helpful
Company:
America's Consumers and Affiliates
Product:
TransElite Universal Life
Policy length:
GI Universal Life

Sep 08,2020
Danielle Hampton Verified
,NC
Thanks for the policy
Company:
America's Consumers and Affiliates
Product:
TransElite Universal Life
Policy length:
GI Universal Life

Sep 05,2020
Daniel Szuba Verified
Chesapeake,VA
Very smooth shopping experience.
Company:
America's Consumers and Affiliates
Product:
TransElite Universal Life
Policy length:
Guaranteed Acceptance Life Insurance

Sep 01,2020
Timothy Whigham Verified
Lombard,IL
The application process was a seamless one and was not time consuming.
Company:
America's Consumers and Affiliates
Product:
TransElite Universal Life
Policy length:
Guaranteed Acceptance Life Insurance

Sep 01,2020
Ricardo Ebia Verified
Ewa beach,HI
Excellent service and we'll inform on the policy. Thank you for your help. Rick
Company:
Gerber Life
Product:
TransElite Universal Life
Policy length:
Accidental Life Insurance

Aug 16,2020
Walt Hutchinson Verified
,North Carolina
Truly outstanding service. I can’t say enough great things about True Blue.
Company:
America's Consumers and Affiliates
Product:
TransElite Universal Life
Policy length:
GI Universal Life

Aug 04,2020
Gabriela Martinez Verified
Barstow,CA
East application process!
Company:
America's Consumers and Affiliates
Product:
TRANSSELECT Term10
Policy length:
10 year

Aug 04,2020
Michael Davenport Verified
Baton Rouge,LA
Cheryl went above and beyond to make sure i got insured all it took was 1 call and the process was very quick i am very satisfied and she really helped me get great coverage at a reasonable price...
Company:
America's Consumers and Affiliates
Product:
TransElite Universal Life
Policy length:
10 year

Jul 19,2020
Lawrence Morris Verified
Penndel,PA
The company itself I stand by excellent and hospitable
Company:
America's Consumers and Affiliates
Product:
TransElite Universal Life
Policy length:
10 year

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