LifePolicyFactsMany employers include life cover as a benefit, often one to three times your salary. It is useful, but it is rarely a complete plan. The main question is whether your family would still be protected if your job changed or ended.
What group cover is
Group life insurance is one policy held by your employer that covers all eligible staff. It usually needs no medical check and costs you little or nothing, which is its main strength. The employer, not you, owns the policy.
Five gaps to check
It ends when the job ends. If you resign, are laid off or retire, cover normally stops, sometimes after a short grace period. The amount may be too low. Two times a 50,000 salary is 100,000, which may not clear a mortgage. It may not be portable. Some plans allow conversion to an individual policy, often at a high price and with a short deadline. Beneficiary details can be outdated. Forms completed years ago may name the wrong person. Benefits can change. Employers can reduce or cancel group plans.
| Question | Where to look |
|---|---|
| How much is paid? | Benefits summary or certificate of cover |
| What happens if I leave? | Portability or conversion section |
| Who is named? | HR portal or beneficiary form |
| Is accidental death different? | AD&D wording, which pays only for accidents |
How to check yours
Ask HR for the plan certificate and read four items: the death benefit, the end-of-employment rule, the conversion deadline and the named beneficiary. Then compare the death benefit with the figure from the Life Insurance Needs Calculator.
How to fill the gap
Example: your need is 700,000 and work gives 100,000. The gap is 600,000. A personal term policy can cover that gap and stay with you if you change jobs. Buying while you are healthy usually keeps the price lower; see the cost of waiting.
Frequently asked questions
Do I still need my own policy?
Usually yes, if anyone depends on your income or you have debts. Workplace cover is a good base, not a full plan.
Is group cover taxed?
Rules differ by country and by cover size. Check your local tax guidance or ask a licensed adviser.
Can I keep it after retirement?
Sometimes at a reduced amount. Read the retiree section of the certificate.
Educational content only. Not insurance, financial or legal advice. Figures are illustrations; check real quotes and policy documents.