Home » Houston TX Life Group

Houston TX Life Group

Although they have similar names, don’t confuse Houston TX life group insurance plans with religious life groups. Also called group term life or group life insurance, this type of life insurance is usually a benefit provided by a group to its members.

Usually, employers give it out to their team members, but it could also mean an organization offering it. However, even if it’s life insurance, it’s different from how standard life insurance works. It’s important to differentiate it from personal term life insurance.

Houston TX Life Group Insurance

Houston TX Life Group

See if your company or organization offers Houston TX life group insurance.

Employers or large-scale entities usually offer life group insurance to their members. These large-scale entities could be a labor organization or an association. Essentially, they buy insurance in bulk, so it’s pretty inexpensive, maybe even free, and is very common. This type of insurance offers low coverage and is usually part of a benefits package upon joining an organization or business.

Most members receiving coverage may not have to pay out of pocket for the policy, depending on the life group plan. Some even choose to take more advanced coverage alongside it, electing to have their portion of the premium taken out of their paycheck. Like with regular insurance plans, you’re required to list at least one beneficiary before the policy can go into effect. You can change or add beneficiaries at any point during the coverage period. 

Most Houston TX life group insurance policies are term life insurance. Often, it’s renewable each year. Usually, this option is available with a company’s open enrollment process. With life group insurance, the organization or employer who bought the policy keeps the master contract.

Usually, members who want coverage through the group policy receive a certificate of coverage. This certificate is needed to show to an insurance company if you leave the company or organization and terminate your part in the group coverage.

General Requirements for Life Group Insurance

There must be a group of people who have something in common other than obtaining life group insurance. Usually, that means you’re a member of a community. Other than being part of a company, it could mean deposit holders at a bank.

This type of insurance usually comes with certain conditions set by groups to their members. Some organizations require their members to participate for a minimum amount of time. For example, members may need to pass a probationary period before participating in the group life insurance or health benefits.

So long as you’re a member of a company or organization that offers life group insurance, you’ll have coverage. Once you leave, however, the coverage ends. It’ll happen regardless if you resign or are fired.

The Pros and Cons of Life Group Insurance

Houston TX Life Group

Call Best Life Insurance Houston Agency and talk about the benefits you can have in your life group insurance.

What is the biggest pro about life group insurance plans? It’s the value for money. Group members usually pay minimal, maybe even nothing at all, for coverage.

They don’t need to worry about missing payments. Usually, part of their earnings goes toward the premium costs. Even qualifying for group policies is relatively simple.

Coverage is usually guaranteed for group members of an organization that offers it. And what is another tremendous advantage? Unlike personal life insurance, group insurance doesn’t require a medical exam to qualify. However, as with everything, it’s not only benefits.

Life group insurance usually only offers the bare essentials. It may not fulfill all of your needs since it only provides essential coverage. It’s usually not enough coverage by itself. If anything, you could treat it as a perk that supplements a personal policy.

And of course, since a large organization is offering these policies, they’re the ones in control of it. If the organization decides to stop the insurance plan or leave its umbrella, the coverage ceases. Depending on the organization, some will allow members to purchase more coverage other than basic life insurance.

Usually, the added premium will still be based on the less expensive group rate. Additional coverage may require you to answer a medical questionnaire, but it probably won’t need a medical exam. 

Personal Term Life Insurance

Now that you know how life group insurance works, how can you tell from regular term life insurance? Term life insurance, usually the type of life insurance offered through life group plans, is temporary life insurance. Coverage only lasts for a few decades at most and usually only guarantees a death benefit.

That is, within 10 to 30 years, if you pass away during that period, your dependents will receive the payout. You won’t be protected if something happens outside of the term period, and the insurance company gives no money. 

Unlike with life group insurance, you’ll be able to select the options that are best tailored to fit you. Whether you make the plan convertible or renewable, that’s up to you and your family’s situation.

Of course, by its nature, personal term life insurance is more expensive than life group insurance you would get through your company. However, it’s still the most affordable option out of the other types of personal life insurance plans.

Your other options would be to buy permanent life insurance, which would last for the rest of your lifetime. It’s more expensive since it also offers some additional benefits besides the guaranteed death benefits.

Whether or Not to Elect for Group Life Insurance

Houston TX Life Group

Contact Best Life Insurance Houston Agency with any questions.

Should you choose your company or organization’s group life insurance plan? Well, it certainly wouldn’t hurt you. It might not be the best life insurance you’ll get, but it’s much more affordable and gives you the basic package.

You may want to only use it as a supplement to a policy you buy yourself, or you may use it to springboard onto a policy that will benefit you. Of course, if you want your family insured as well, you may need to get a policy for them outside of that.

If you want to discuss your life insurance options, you should sit down with an insurance agent. You’ll want to know all the suitable options for you before coming to a decision. Contact the experts with Best Life Insurance Houston Agency to ask the other choices besides Houston TX life group plans that’ll work for you.

Houston, TX Fun Facts:

  • The scale replicas of the Chinese tomb warriors that used to line the Forbidden Gardens were sold off for $100 each.
  • The population of Houston is around 2.31 million people.
  • The Viet Hoa supermarket offers a massive collection of hard-to-find International foods, including…live frogs?
  • The Swaminarayan Mandir is the first traditional Hindu Mandir in the nation.
  • Check out the official website for more information!

Not sure where to start? Fill out our unique form and we will find the best life insurance for you.