Tennessee Life Producer Practice Exam

Group life insurance policies are typically structured as annually renewable term insurance. This type of policy allows coverage that is renewed each year without requiring evidence of insurability, making it an attractive option for groups such as employers offering benefits to employees. The structure is based on providing simplicity and affordability, as premiums can remain stable over the policy term while providing a specified death benefit.

The annually renewable term nature of group life insurance means that the coverage is in place for a designated term, often one year, and can be renewed yearly without the need for individual underwriting. This facilitates easy access to life insurance for members of the group, and is advantageous for employers who want to offer life insurance as part of their employee benefits packages.

Other options like whole life and variable life insurance involve permanent coverage with cash value components, which are not a hallmark of group policies. Term insurance with conversion options isn’t uniform to all group policies, as some may not have conversion features. Thus, the annually renewable term structure is the most common format for group policies.