Association Group Life Insurance
Association group life policies are very nearly like standard Group Life Insurance policies, but are only offered through membership in an organization. These organizations can be open to anyone, such as the NRA or only to members of a certain profession. The American Medical Association offers a group policy to its members, as do state bar associations and other professional societies.
The main benefit of this type of policy is that there is usually no medical exam or proof of good health required, or fewer restrictions as far as health goes. So as with standard group, it may be a good option for someone who has had health problems in the past.
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Things to Consider when Purchasing an Association Group Life Policy
These policies are usually not as cost-efficient as an employer-offered policy, so the difference between the premiums for an individual policy and the group policy may not vary greatly. The quality is also varied, so it is best to check the background of the company offering the insurance before you purchase it. There is some risk involved, as the insurer may choose to cancel the group policy at any time for any reason, and there is no guarantee that the rates of the policy will remain the same.
As with standard group life, these policies are only good for as long as you choose to maintain your membership. If you aren’t sure that you will continue your membership indefinitely, then it is wise to make sure that the policy has the option to convert to an individual permanent life policy. Otherwise it is best to go with an individual policy, so that there are fewer outside restrictions. If you are looking for a little extra insurance, association group life may be an option, but it is probably wise to consider other types of policies, such as term life, before making your final decision.
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