New York Child Abuse Identification and Reporting Practice Exam

Which statement about employer group life insurance is true?

1. It is inexpensive

2. It generally provides a high level of coverage

3. It's often temporary and only available while employed

4. It offers a variety of coverage options

The correct answer is: It's often temporary and only available while employed

The statement that it’s often temporary and only available while employed is true regarding employer group life insurance. This type of insurance is typically provided as a benefit of employment, meaning that employees usually receive coverage only for the duration of their employment. If the employment ends—whether due to resignation, termination, or retirement—the coverage often ceases, and the individual may not be able to retain the policy or may face higher premiums if they seek individual coverage after leaving the employer. This feature differentiates employer group life insurance from individual life insurance policies, which can be maintained independently of employment status. While there are many benefits associated with employer group life insurance, such as lower costs compared to individual policies, the temporary nature of the coverage is a significant factor that potential policyholders should consider.