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| Life Insurance - Performance Evaluation - Term Plan Review |
 Term Plan Review
I reviewed the group term program offered to Maricopa County Employees. I wanted to evaluate whether a fairly healthy individual could get his/her own term policy for much cheaper. I did an analysis showing a sample 45 yr. old (both male & female) for a 20 yr. level term and comparing to the group term plan offered by Maricopa County and as you can see the individual policies are far less expensive.
Additionally here are other advantages of an individual policy over a group term plan:
- Individual plan is portable (you can take it with you) unlike the group term plan which ceases when your employment with your employer ends.
- The group term plans sometimes can be converted to a permanent life plan BUT the conversion is limited to usually the most expensive permanent life plan offered by that insurance carrier (they know that anyone converting a group term plan must be unhealthy); however an individual term plan can be usually converted to ANY permanent life plan offered by the insurance company.
- The group plans’ rates are subject to increases at any time whereas a 20 yr. level term premiums are guaranteed for the entire 20 yrs.
Case Study Support Material
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