Group Life Insurance

It depends on your goals. Group life insurance is a strong choice if you want affordable, easy-to-manage coverage for your entire workforce, especially for employee benefits packages, retention, or compliance needs. If you need coverage that stays with an individual regardless of employment, an individual life policy may be more suitable. Speaking with a licensed agent can help you decide what fits your company's situation.

The main trade-off is that group life insurance coverage typically ends when employment ends, unless a conversion or portability option is available. Coverage amounts are also often lower than what an individual policy could offer, since it's designed as a base benefit. It's not a "catch" so much as a different structure  you're getting affordable, simplified coverage tied to your employment status.

There's no single "best size" but many businesses find the most value offering group life insurance once they have a handful of full-time employees, since group rates and guaranteed acceptance become more cost-effective at scale. That said, group life insurance can still be worth it for smaller teams, particularly for attracting talent or meeting basic benefit expectations, even if the group is small.

In many cases, yes depending on the plan, employees may be able to convert their group coverage into an individual policy or continue it through portability options. This is often more expensive than the original group rate, but it allows continued protection without new medical underwriting, giving departing employees a safety net during the transition.