One major difference between group life insurance and personal life insurance is portability. Group life insurance is only available to an employee as long as they are employed with the company that provides the policy. If an employee leaves the company, they will no longer have coverage under the group life insurance policy. Personal life insurance, on the other hand, is portable and remains in effect as long as the premiums are paid. This means that an individual can take their personal life insurance policy with them if they change jobs or retire.
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Another difference between the two types of insurance is the amount of coverage. Group life insurance policies often have lower death benefits than personal life insurance policies, with a typical payout of one or two times an employee’s salary. Personal life insurance policies can offer much higher death benefits, depending on the policy and the amount of coverage the individual chooses.