Check the differences between these two products and which one best suits your needs.
The big difference between individual and group life insurance is the level of personalization. In general, group life insurance meets basic needs, common to a group of people, linked together by a bond or common interest.
Individual life insurance is a product adjusted to the needs of each client. This type of insurance is contracted directly by the insured, who receives his policy according to the chosen plan. In order to personalize the product, in general, a complete analysis of the insured is made considering a series of factors such as profession, financial responsibilities to the family, sports practices, and health history, for example.
Individual life insurance offers specific and adjustable protections, according to the style, age, and standard of living of each client. In these cases, depending on the insurance company, it is also possible to opt for complementary coverages such as funeral assistance and receipt of insured rates for periods of hospitalization.
But, after all, how does group life insurance work?
Group life insurance is generally used by companies to ensure the safety of their employees and, thus, demonstrate commitment. Offering this benefit is quite common among companies today. Thus, group life insurance is a product that serves employees and/or business owners.
The number of employees required for hiring varies with insurers. But in general, collective plans are offered, with coverage from three or even two employees and minimum ages, usually between 14 and 60 years old.
As it is not a product with a high level of personalization and, in general, it meets the basic needs of the customer, the values of these insurances are usually lower and cease to exist when the company leaves the company. Therefore, for more specific and long-term protection, it is interesting to seek qualified advice and individual insurance.