Is a group insurance policy the right choice for someone who is disabled?
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UPDATED: Sep 15, 2020
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A group life insurance policy can offer an important lifeline to disabled individuals who are unable to get life insurance on their own. Often applicants are not asked to provide any information about their current health when applying for a group policy. That means that no matter what the nature of your disability is and how much risk it poses to the insurer, they can’t reject you. Insurers can do this because when they issue group policies they collect premiums from a pool of policyholders. Most of these policyholders are in good health and have little risk of dying during the time they have the policy so they offset the riskier policyholders.
However, group life insurance policies aren’t portable like individual policies are. So if you get the coverage through an employer group and you leave, then you will no longer have life insurance coverage. An individual life insurance policy that is guaranteed issue may be a more expensive option, but your coverage will not be contingent upon your inclusion in a particular group.