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Comparing Group Life to Private Life Insurance-What is the Best Choice for you?

Researcher & Writer
April 23, 2014

Losing your job is tough enough. Losing your benefits takes things to a whole-'nother level! Consider private life insurance instead of relying on your employer based group insurance. We can help you get the best life insurance rates by age. Give us a call today to see what we can do for you!

Group Life Insurance Through Work vs Individual Private Insurance

The following group life insurance companies top ten list covers the carriers that write the most group life insurance. One of these companies may insure you through work. While these are excellent life insurance companies, if group life insurance is your only coverage, you might want to consider at least supplementing your coverage with term life insurance. Group life insurance makes up about 38% of the total life coverage in force.

You can view the best rates on term life insurance to get an idea at how affordable term can be:

Call Today 888-234-8376

Top 10 Group Life Insurance Companies

In 2014, the top group life insurance companies by written premium where as follows:

  1. MetLife Inc.
  2. Prudential Financial Inc.
  3. Minnesota Life Insurance Co.
  4. New York Life Insurance Group
  5. Cigna Corp.
  6. Unum Group
  7. Hartford Financial Services
  8. Massachusetts Mutual Life Insurance Co.
  9. Aetna Inc.
  10. Lincoln National Corp.


Click on one of the top ten group life insurance companies above to read the corresponding company review.

You may also want to check out these similar topics:

Employer group life insurance vs individual life insurance

There’s a saying out there that every time a quarterback throws a football one of three things can happen. The pass:

  • Can be caught by the intended receiver, Yay!
  • It can be dropped by the intended receiver, Boo!
  • Or it can be intercepted by the other team, Ugh!

So when you take an objective look at it, throwing the football is probably not the best strategy for a team to use (especially if the quarterback’s name isn’t Manning or Brady).

Now you may be asking yourself what does this have to do with employer based life insurance? And the answer is, a lot! Because, like throwing the football in a football game, depending exclusively on employer based life insurance will also have many potential outcomes with most of them ending badly!

Let’s take a look!

Employer Group Life Insurance vs Individual Private Insurance

3 Common Situations that Make Employer Group life Insurance a Bad Thing

1. Your job does not love you.

No matter how great your job is, or how long you’ve been there, at the end of the day you are there to serve a purpose. And when you’re no longer able to serve that purpose, you will be replaced.

We’ll be the first to admit that people don’t often like to hear this, but we want to get it out there because our responsibility at TermLife2Go is to help secure your family’s financial security and without acknowledging this reality it simply can’t be done.

2. Everyone is replaceable.

No matter how essential you feel you are, you can, and will, one day be replaced. Even top level employees that carry key person life insurance have been fired. Job security no longer exists for the majority of corporate America. As a result, having private coverage in place makes sense.

3. Corporate profits.

If there’s a penny to be saved, the corporate world will find it, even at the expense of your benefits. Now we’ll be the first to acknowledge that we’re not taking the most positive outlook on the US labor market today. But let’s face it, in today’s corporate world where people are expected to have anywhere from 10 to 11 employers over there lifetime, how many of those employers are really going to be offering their transient workforce life time benefits?

Employer life insurance: 5 all too common scenarios

Scenario #1 You’re Fired!

What will happen to your employer provided life insurance policy if your fired? Don’t know? That’s OK because how many of us actually research what will happen to our benefits if we’re fired during our initial hiring orientation? Answer: not many of us.

If we were to be super sophisticated and savvy we would look for employers that offer “portable” benefits. These types of benefits are attached to the employee not the employer, which makes them a much more valuable benefit. Problem is, these types of benefits are few and far between and will typically be seen most commonly with union held positions.

Which means that if your employer provided life insurance policy isn’t portable, you’ll either:

Have to re-apply with the group life insurance carrier and likely lose the subsidized rate received by your former employer.
Or you will simply lose your coverage altogether and have to seek out coverage elsewhere.

Scenario #2 I Quit!

OK, so you weren't exactly fired, but you just couldn’t take it anymore. In this scenario you’re going to basically find yourself in the same situation as one who was fired.

Ask yourself these three questions:

  1. Is your employer provided life insurance portable?
  2. Will you have to re-apply as a separate applicant?
  3. Will you be able to afford the new, non-subsidized, life insurance premium?

These are just a few of the many questions you’ll likely encounter once you have decided to leave your former employer. Check out our life insurance rates by age chart to get an idea of how affordable private coverage can be.

Scenario #3 You’re reducing my hours?

Here’s an alarming trend we’re seeing more and more of lately:

“Jim you’re not fired, we’re just reducing your hours from 40 to 30 per week”.


Jim, we love you, but we don’t have it in our budget to offer you “full time” benefits anymore.

What happens now? If you don’t know what happens now, we hope that the idea of getting life insurance coverage on your own instead of relying on employer life insurance is beginning to look better and better.

Scenario #4"You’re what? Sick? Oh... that sounds serious."

  • What happens if you get sick or injured and can no longer perform your job?
  • What happens if you need to go on disability?
  • What happens if you find yourself with a medical condition that would prevent you from being able to qualify for a life insurance policy on your own and now all you have is life insurance at work?

We can’t emphasize this point enough because it happens all the time. People rely on their employer life insurance instead of buying their own policy---they get sick, they lose their job, and now they are out of work and un-insurable.

Worst Case Scenario

The primary bread earner becomes ill, can no longer work and as a result, he or she lose their employee benefits. Now in this situation, Medicare can always step in a pay for ones medical bills if they can demonstrate that they qualify for it, but there isn’t a Medicare solution for life insurance. If you die without life insurance--- that’s it, your family is on its own.

Scenario #5 Thank God! I made it; now I can retire!

Portability, Portability, Portability.

Ever see what a 30 year term life insurance premium looks like for a 65 year old? Probably not, because it doesn’t sound as attractive as those commercials you see over and over again about:

“John, a 40 year old father of two just got a $250,000 dollar life insurance policy for less than $17 a month.”

The truth is, getting life insurance as a senior is probably going to be pretty expensive. Not to mention more difficult to qualify for. Let’s face it, you’re 65 years old and chances are you haven’t lived a life of a Tibetan monk! Which means you may be taking a few medications, may have had a few previous medical conditions that you’re currently treating, or have had in your past medical history.

All of these factors will play a role in, not only the price you will pay for your life insurance, but also whether or not you’ll even be able to qualify for life insurance at all.

Non Employer Private Individual Life Insurance

If you’ve made it this far there really is only one question that needs to be asked:

"Do you want to base your family’s financial security on whether or not your employer is going to continue to offer you and your family a rock solid portable life insurance benefit, or would you rather take matters into your own hands and know for sure that if anything happens to you, your loved ones will be taken care of?"

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We are a team of life insurance experts with the simple mission of helping you find the best coverage for your unique situation. We research, review, and rank life insurance companies to make that process easier.