Group Life Insurance covers Death, just like any other Life Insurance Policy. So when the beneficiary presents a Death Certificate to the Life Insurance Company, they will cut them a check for the specified amount.
Most Group Life Insurance is not what is called "portable", meaning that you have the option to continue coverage after your employment ends with that company. If your Group Life Insurance is extremely cheap, then it is most likely true Group Life coverage and will not be portable if you were to change jobs.
Some companies offer "Voluntary Life Insurance" or "Individual Group Policies" that do transfer with you when you change jobs. Often these policies have simplified or less stringent underwriting, so they can be good opportunities for people with more serious health conditions.
Just remember to always ask if the policy is "portable" or not when you change jobs. If it is not, it is highly recommended that you secure an Individually Owned Policy.
Most group life insurance policies are small term life policies that renew annually after a risk review by the carrier. The younger and healthier the company employees the better the rates. Most employers pay the premiums for the employee and it becomes a "free benefit" for the employee. The employer holds the master policy and the employees each have a certificate of insurance. Ranges can vary from $10,000 to up to five times a person's income. Most group life insurance policies expire when the employee terminates employment for whatever reason. It is always advisable to have your own personal life insurance along with a group life plan to protect your insurability.
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Most Group Life Insurance is not what is called "portable", meaning that you have the option to continue coverage after your employment ends with that company. If your Group Life Insurance is extremely cheap, then it is most likely true Group Life coverage and will not be portable if you were to change jobs.
Some companies offer "Voluntary Life Insurance" or "Individual Group Policies" that do transfer with you when you change jobs. Often these policies have simplified or less stringent underwriting, so they can be good opportunities for people with more serious health conditions.
Just remember to always ask if the policy is "portable" or not when you change jobs. If it is not, it is highly recommended that you secure an Individually Owned Policy.