What is the difference between "group" and "Individual" life insurance

By Brian S. Bullock, LSSBB, FMLI, ALHC, AIRC, ACS  ( www.briansbullock.com)

I have had the opportunity in my career to work with both group life insurance and individual life insurance.

Many people do not know the differences between these two types of coverage.

It is actually pretty simple.  An individual life insurance policy is issued to one person with a unique policy number.  

A group life insurance policy is issued to a group of people under one policy number.  Typically, a group policy is issued to an employer for the purposes of enabling an employee benefit for their employees.  The group policy does not specify covered insureds by individual names, but defines coverage in a provision called “Eligible Class”.  

For individual life policies, a robust application process, including medical and other underwriting happens.  Being covered under a group life policy is often without election and medical underwriting is not required (in most cases, unless election is required by the employee and they are a late applicant and for certain amounts).

These are just a few differences between a group and individual life policy.  If you have or are interested in trying to obtain an individual life policy or want to discuss group coverage in detail, send me a message via the contact form in the right column.  👉

Grandpa Joseph had a life insurance policy, I think? How can I investigate and try to locate the company that might have the policy?

 By Brian S. Bullock, LSSBB, FMLI, ALHC, AIRC, ACS  ( www.briansbullock.com)

👉National Association of Insurance Commissioners Lost Policy Location Service

Click on the above link.  The NAIC site will then ask for verification of the following (hint: these are things you should do before using the application):

• I have made a diligent search of the deceased person’s records and property, including bank statement and safety deposit boxes. I have asked family members to identify all life insurance policies and annuity contracts that I have reason to believe covered the life of the deceased person named in the following request. The information I have provided is complete and accurate to the best of my knowledge.
• Life insurance companies will respond directly to me only if they have reason to believe they have any life insurance policies or annuity contracts in the name of the deceased, and I am the designated beneficiary or I am authorized to receive information.
• An insurance company may require additional information from me. This may include a notarized death certificate and documentation of my legal authority to request or obtain information about the deceased.
• The NAIC’s role with this request is to make it available for insurers to research.

Many times in the insurance industry, policies can be active for years and even decades.  Insurance companies can change names, be acquired or sometimes go out of business.

If you need assistance in a life policy location, please send me a message via the contact form in the right column.  👉