Does group life insurance make sense for you?

(CNN) —  

The best life insurance companies offer policies that can provide your family with a crucial income source after you pass away. However, before you move forward with the purchase of a life insurance policy, you should first check for any group life insurance coverage you might be able to qualify for, either through your employer or another organization.

Why? Because group life insurance comes with serious benefits for those who can qualify, and it may be cheap or even free depending on how you receive it. Let’s take a look at exactly what group life insurance entails, and whether it might make sense for you.

Group life insurance is a term used to describe any life insurance policy that covers an entire group of people. Commonly, this type of life insurance is offered within an employee or labor organization’s benefits package, so the coverage can cost far less than the market rate. In some cases, it may even be offered for free, or there may be both free and paid options.

Most importantly, group life insurance policies are offered to a group within a single contract, so there are no medical questions or medical exams required. The life insurance company assesses risk based on the entire group instead of the individual, so it doesn’t need to know your personal medical history.

This means you can qualify for group life insurance coverage (if you’re offered it) regardless of your medical history. You can even get group life insurance when you can’t get life insurance coverage separately on your own.

But remember that group life insurance coverage may not be sufficient to cover all your life insurance needs. If the group life insurance plan you’re offered has a death benefit that comes up short of what you think you need, you should consider supplementing it with a separate life insurance plan you buy on your own.

Expert Tip: You can have more than one…

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