Individual Life Insurance vs Group Life Insurance
Close
Close

Buy a Life Insurance Plan in a few clicks

Now you can buy life insurance plan online.

Kotak e-Term Plan

Protect Your family’s financial future with Kotak e-Term Plan. Know more

Kotak Assured Savings Plan

A plan that offer guaranteed returns and financial protection for your family. Know more

Kotak Guaranteed Savings Plan

A plan that offers long term savings and insurance in one premium. Know more

Kotak e-Invest

Insurance and investment in one plan with Kotak e-Invest. Know more

Kotak Health Shield

Insurance against medical expenses related to heart, brain, liver and Cancer. Know more

Individual Life Insurance vs. Group Term Life Insurance

Individual Life Insurance vs. Group Term Life Insurance
  • 19th Dec 2018 |
  • 4,787

Securing the financial future of your loved ones in case of your absence or sudden loss of income is achieved with a life insurance policy. However, life insurance may seem confusing with the different types of plans that are offered by multiple insurers.

You may choose between an individual plan, term insurance, money back policy, group insurance, and many more. A common decision that you may find hard to make is choosing between group insurance and an individual plan.

Before you decide between individual life insurance vs. group term life insurance, understanding both these types of policies will be beneficial.

Individual life insurance plans

An individual life policy covers only you and may continue until your retirement, or even later in some cases. When you first avail the insurance policy, the insurer will levy a certain premium based on some factors. These include your age, profession, health conditions, sum assured, and several others. For traditional individual insurance plans, the premium remains constant during the entire duration of the policy. This means even if you have to pay a slightly higher premium, the coverage does not decrease as you grow older. Therefore, it is recommended that you buy an individual plan at an early age, which significantly reduces the premium you pay for a higher coverage. Moreover, the risk of not being eligible for a policy when you are older is higher, which is why it is better to purchase insurance at an early age.

Group term life insurance plans

A group plan is offered by the employers as an additional perquisite to their employees. Unlike an individual plan, a group term plan is owned by your employer. However, you must remember that coverage under a group plan is available only if you are eligible. However, such insurance coverage is available only as long as you are employed. Moreover, the group insurance plan may be canceled at any time by either your employer or the insurance company.

The premium on a group plan may often be lower than an individual policy. However, in most cases, the premium increases when you attain a certain age, which is typically every five years. This means that the premium you pay for the group coverage increases, as you grow older.

Let us now understand the differences between an individual life insurance vs. group term life insurance policy.

Premium

When you buy a traditional individual life insurance policy, the premium remains constant during the entire duration. On the other hand, the premium on a group plan may increase proportionately as you grow older.

Coverage

The amount of coverage under a group plan is limited as per the terms and conditions as determined by your employer. However, there is no limitation on the amount of life coverage that you may avail of under an individual plan. In most cases, coverage under a group plan is not sufficient to cover an extreme condition. Such a limitation is not applicable when you opt for an individual plan.

Continuity

As long as you make the timely payment of the renewal premium on your individual policy, the coverage continues. In comparison, coverage under a group insurance ceases when you quit your job or lose your job. Some group policies offer a portability option, but there may be several restrictions and exclusions and you may also have to pay a higher premium for such portability.

Cancellation

An individual life plan cannot be canceled by the insurance company. The only way coverage will become unavailable if you do not pay the premium in a timely manner. On the other hand, a group plan may be canceled by either your employer or the issuing insurance company. Therefore, there is a higher uncertainty of coverage under a group plan.

Life insurance is a powerful method to financially secure your loved ones. It is difficult to make a choice between individual life insurance vs. group term life insurance. It is recommended that even if you are covered under a group plan, you must enhance the coverage with an individual policy.

Kotak e-Term Plan

Download Brochure

Features

  • Nominal Cost
  • Multiple Plan Options
  • Flexible Payout Options
  • Critical Illness Rider
  • Tax Savings
  • Long term Coverage

Ref. No. KLI/22-23/E-BB/492

T&C

Browse our library of resources

- A Consumer Education Initiative series by Kotak Life

Similar Articles

9 Ways to Help Family Members in Financial Trouble

Which Death Type Does Your Term Plan Not Cover?

Protection for your family

Different Types of Protection Plans

Is Life Insurance Investment Worthy Enough

Do You Need Term Insurance Cover After Retirement?

How Not To Get Your Term Insurance Claim Rejected

Why Term Insurance Is Better Than ULIP?

Tax Benefits of Term Insurance in India

Do Beneficiaries Pay Taxes on Term Insurance?

What Is a Passive Income? Why Should You Use It to Buy a Term Plan?

Why Should You Add a Rider to a Term Insurance Plan?

4 Reasons Why You Need Critical Illness Cover

Is Term Life Insurance Plan an Investment or Expense?

Term Insurance With Riders In India

How Much Term Life Insurance Cover Do I Need in India?

How Much Cover Should I Take In A Term Plan?

Are The Add-ons and Optional Features of Term Insurance Plans Actually Beneficial?

Why should single women purchase term life insurance?

How Does A Term Life Insurance Work in India?

What Is a Renewable Term Insurance Policy?

Top 3 Reasons Why You Should Buy A Term Plan Now

Insuring Against Accidents with an Accidental Death Insurance Rider

What Are Insurance Riders and How to Choose Them in a Term Plan?

Does Term Insurance Cover Accidental Death?

Term Insurance with Critical Illness

How to Buy 1 Crore Life Insurance Policy Without Medical Test

Insurance Policy for Housewife In India

What is a Joint Term Insurance Plan? Key Benefits of Joint Term Plan

5 Things To Consider While Buying Term Insurance Plan

Buying A Term Insurance? Don't Ignore the Claims Settlement Ratio

Is term Insurance Needed for People With No Dependents?

8 Things To Do After Buying Term Insurance

5 Reasons to Buy Term Insurance When You are in Your 30s

How to Identify Term Insurance According to Your Needs?

Different Types of Premium in Term Insurance

Why Buy Term Insurance Even at Rising Rates?

Key Differences Between Term Insurance, ULIPs, And Health Insurance

Can I Buy Term Insurance for a COVID-19 Patient?

Why Buying a Term Plan Is Smarter Than Traditional Life Insurance Products

Why does every working woman need life insurance?

Can Non-Resident Indians (NRIs) Buy Term Insurance In India?

Does Your Term Insurance Plan Cover Death Due to COVID-19?

Why Should You Not Take A Term Plan Without Medical Test in India?

5 Benefits of Early Retirement Planning

What is Critical Illness Policy

Insuring Against Disability With Disability Insurance Rider

8 Types of Death not covered in Term Insurance Plan

Understanding Term Insurance Riders

Ideal Features of a Suitable Term Plan - Act Now for a Stress-free Future

While Buying Term Insurance Compare Features, Not Just Premiums

Term Insurance Calculator - Everythng You Need To Know

Should You Have Multiple Term Life Insurance Policies?

How to Ensure That Your Term Insurance Claims Are Never Rejected?

Why Should New Parents Buy Term Life Insurance?

Why Should You Buy Term Insurance in 2022?

Gift Your Father A Term Insurance Plan This Father's Day

4 Methods to Calculate How Much Term Insurance You Need

Planning For Children's Future

How To Choose the Right Term Insurance Plan?

What are incremental term insurance plans?

All you need to Know about Term Insurance Plans for Housewives

Is it a Good Time to Buy Term Insurance During the COVID-19 Pandemic?

10 Ways to Mentally Refresh After a Stressful Day

Increasing Term Insurance and Riders

4 Things To Expect From Your Term Insurance Plan in India

Term Insurance Basics You Should Know

What is a short term insurance policy?

Which Term Insurance to Choose: Lump Sum or Staggered Pay-out Plan?

How Much Term Insurance Do I Need

Term Insurance: Most Common Term Insurance Myths Explained | Kotak Life

When is the Right Time to Buy Term Life Insurance Policy for Yourself?

Why Term Plan Should Be The First Step To Securing Your Future?

Side Effects of Covid-19 Booster Doses

How To Change The Nominee in Term Insurance?

Why Buy Term Insurance Plan With a High Cover?

Endowment Plans vs Term Plans: Understanding the difference

Why Surrendering Your Term Plan Policy In The Final Phase Maybe A Bad Idea?

What is the Right Term Period For Term Insurance Policy? Here's How You Should Choose!

5 Term Insurance Benefits for Single Women

Advantages of Buying Term Insurance in Your 50s

What Happens if you Hide Facts in your Term Insurance?

What Are the Best Term Insurance Plans for Planning Retirement?

Steps on How to Buy Term Insurance Online

Make Your Online Term Plan Your Family's Monthly Pay Cheque

What All Documents Required For Term Insurance In India?

Buying A Term Insurance Plan? Take These Factors into Account

Why Spending Time with Friends is Essential for Your Mental Health?

What Should Be The Duration Of Your Term Plan in India?

Term Life Insurance Plan for Smokers vs Non-Smokers

Busting Myths and Facts About Term Insurance Policies

What is Term Insurance - A Complete Guide

Make Your Online Term Plan Your Familys Monthly Payout

Cost of Term Insurance Likely to Increase Soon

Is There Any Tax Benefit on Term Insurance?

Online vs Offline Term Insurance: Which Is The Better Option To Buy

Everything About Claim Settlement Ratio for Term Insurance

What Is the Correct Age to Buy Term Insurance?

Term Insurance Plans and Policies for Smokers

10-Year Term Life Insurance Policy - Explained in Detail

What are the Documents Required for Term Insurance Plan?

Tips to Choose the Right Term Period for Term Insurance Plan

Reasons You Need Term Insurance Plan as a Self-Employed Person

What is Form 16, Form 16 part A, Form 16 part B, Information Required and FAQs

Why 1 Cr Term Plan Is Necessary For Family?

Can A Housewife Buy a Term Insurance Plan - All You Need to Know

Know How to Invest at Every Age for Larger Returns

Term Insurance – Why You Must Include In Your Financial Planning?

Is a Term Insurance Policy Portable?

Term Vs. Whole Life Insurance: Which One You Should Buy in India?

Term Plan with Spouse Cover

Term Insurance Age Limit – Term Plan for All Age Groups

Is Group Term Life Insurance Provided By Employer Sufficient?

कोविड -19 बूस्टर खुराक के दुष्प्रभाव

Choosing Riders for Insurance Plans

All About Term Insurance Inbuilt Coverage

8 Benefits of Term Insurance You Should Know

Is It Good To Buy A Term Insurance Plan In 2022?

Ensure Protection Against Death, Disease & Disability With Life Insurance

Can I Extend the Tenure of My Term Insurance Plan?

Term Insurance: Smokers vs Non-Smokers

Can Term Insurance Plans Be Purchased As A Gift?

6 Reasons That Make Term Insurance a Must Buy

Why Married People Should Buy Term Insurance Under MWP Act?

Do I Need to Give a Medical Test for Term Insurance in India?

How to Compare Term Insurance Online

What Should You opt for - Limited or Premium Pay?

Advantages & Disadvantages of Term Insurance in India

10 Ways to Get Your Kids Involved in Your Healthy Lifestyle

9 Most Frequently Asked Questions on Term Insurance

Can I Make Changes to My Term Insurance Policy Post Purchase?

What Happens to Term Insurance Plan With No Beneficiary - Kotak Life

What Types of Deaths Are Covered in a Term Insurance Plan?

Calculating Term Insurance Premium

6 Types of Death not covered in Term Insurance Plan

टर्म इंश्योरेंस क्या है? टर्म इंश्योरेंस का मतलब

How to Surrender Term Life Insurance When You Have No Liabilities?

Key IRDAI Regulations That Changed Face Of Term Insurance Industry In 2020

Comparing Term Plans – What Should You Look Out For

Difference Between Term Insurance vs Life Insurance

Why is it important to buy term insurance plan?

Best Investment Plans for Children - Secure Your Child's Future

Term Plans are Definitely Cheaper than You Think!

How Does Term Life Insurance Work? Learn the Benefits

How To Calculate The Amount Of Term Life Insurance You Need?

Can You Increase Your Term Insurance Cover?

Term Insurance: What Happens When You Don’t Pay Your Premiums?

Why Term Insurance Is Important in times of COVID-19?

Planning For Son or Daughter's Wedding

Insuring Protection Against Death With Death Insurance Rider

Should You Buy a Term Plan After 40?

Should Youngsters, Working Couples Buy Term Insurance Plans?

Can Senior Citizens Avail Term Insurance?

Importance of Term Insurance at Every Stage of Your Life

How To Choose the Right Sum Assured Under a Term Plan?

Insuring yourself against Ill Health with a Critical Illness Rider

8 Factors to consider before choosing a Critical Illness Insurance

What is Insurance Premium - A Detailed Guide

Is ₹1 Crore Term Insurance Good Enough Cover?

Why Premium Amount for Term Insurance is So Low?

Eligibility Criteria for Buying Term Insurance in India

Can I Get Term Insurance on Behalf of My Spouse?