What type of life insurance coverage is typically provided through an employer?

Group life insurance is commonly provided by employers as part of their employee benefits package. This type of coverage offers life insurance protection to a group of individuals, typically employees, under a single policy. It is usually more affordable than individual life insurance because the risk is spread over many participants, and the employer often subsidizes some or all of the cost.

Group life insurance tends to require minimal or no medical underwriting, allowing employees to obtain coverage easily. The policies are typically structured as term insurance, meaning they provide coverage for a specified period, but they are categorized as group insurance because they benefit a collective group rather than individuals securing their own separate policies.

This option is favored by employers because it helps attract and retain talent while providing employees with financial security at a lower cost, which would be difficult to replicate with individual permanent life insurance policies or renewable term insurance independently.