What is Yearly Renewable Group Term Insurance?
Definition of Yearly Renewable Group Term Insurance
A life insurance policy that covers a number of people and is renewed each year is known as ‘yearly renewable group term insurance’. Mostly such policy is offered and given by the employer to its employees.
Explanation of Yearly Renewable Group Term Insurance
Yearly renewable group term insurance is often bought by the employers and given to the employees as a part of benefit package. For such, policy employers pay most or if not all. It is beneficial for the employees who do not have coverage or adequate coverage as the premium is much lower. It is beneficial for the employees because if an employee in leaving an organization/employer, he/she can convert group policy into an individual policy. But the conversion cost might be high. So, it is only useful if a person is uninsurable.