Life Insurance Awareness Month: Reasons to Consider Group Term Life Insurance

As you know, September is Life Insurance Awareness Month—a perfect time of year to evaluate your life insurance needs and make any necessary updates to your coverage. To help you make decisions for your family’s long-term financial security, we’re continuing this month’s series of brief refreshers on three different types of life insurance.

Cost Efficient Coverage

Term life is generally the most cost-efficient life insurance, particularly when purchased at a young age. If you’re in the process of building a family and you have a limited amount of money you can spend on insurance, you might want to consider Term life insurance. Term life can be a smart budget decision because it allows you to purchase a high level of coverage during those years when your need for financial protection is most crucial—like when you have a mortgage and anticipate the need to cover college tuition for your kids.

Term life policies provide coverage for a specific period of time. USBA offers Term life insurance policies for 5, 10, 15 or 20 years—you choose the term that’s best for you. The younger you are when you purchase Term life, the lower your premiums. Here are examples of premiums for our most popular group Term life policies:

• USBA 10 Year Group Level Term: $100,000 of coverage starting at $4.50 per month¹
• USBA 15 Year Group Level Term: $100,000 of coverage starting at $5.75 per month¹
• USBA 20 Year Group Level Term: $100,000 of coverage starting at $7.33 per month¹

While your premiums are not guaranteed, they typically remain level for the length of your term. When your term ends, you can renew your coverage or convert it to Whole life insurance, depending on your needs.² Term life pays a death benefit only if the insured passes away while the policy is in force. Unlike Whole life, Term life policies do not build cash value.

Considerations for Term Life Insurance:

• Is the amount of money I can spend on life insurance limited?
• Do I have financial commitments that are temporary?
• If you have a tight budget and need insurance for only a set period of time, term may be the best answer for you.

Individual vs. Group Life Insurance

You might be wondering about the difference between individual and group life insurance. Individual life insurance is a life insurance policy that covers you as an individual. You pay for the policy and own it. Group life insurance is life insurance for which a single contract covers a group of people. Usually, the policy owner is an employer or organization, such as USBA. Because the insurance risk is spread across more people, group rates are usually lower than those for individual coverage. 

Typically, employer-paid group life insurance isn’t portable. In most cases, when you leave a company, you lose the coverage. It stays behind with the job. However, with USBA group life insurance, such as USBA’s 15 Year Group Level Term Life Insurance, you own it and can take it with you, wherever you go.

Coverage for Your Kids

Group Term life insurance is not just for adults. USBA offers Children’s Group Term Life Insurance, an optional rider designed to help you protect your eligible children (unmarried children ages 14 days through 22 years) who are not eligible for USBA Membership on their own. When you purchase USBA Life Insurance, you have the option to add Children’s Group Term Life Insurance. Take a look at key coverage features:

• Monthly premiums start at $1.50 per unit.
• Each unit covers all of your eligible children.
• The older your children get, the more protection USBA Children’s Coverage provides.
• This optional rider can be added to all USBA Term and Whole life policies.
• 30-Day Free Look

For More Information

USBA Group Term Life Insurance offers you the opportunity for high levels of coverage that can help you strengthen your family’s financial future. Learn everything you need to know about USBA Group Term Life Insurance and USBA Children’s Group Term Life Insurance, along with details on how to apply for coverage.

We can also help you get an estimate of how much life insurance you need by looking at what fits your budget and what fits your future financial needs. The USBA Life Insurance Coverage Estimator lets you look at both scenarios easily.

¹ Example premium for a 24-year-old female on a Preferred Rate policy. See Policy Details at USBA.com for more information.
² Certain restrictions may apply.