What is a potential drawback of group life insurance policies?

Group life insurance policies are typically designed to provide coverage for a group of individuals, often through an employer. One significant drawback of these policies is that the coverage is often tied to employment status. When an employee leaves the job, whether voluntarily or involuntarily, their group life insurance coverage can end as well. This means that the individual may suddenly find themselves without life insurance, which can create a gap in coverage.

In contrast, individual life insurance policies are portable and remain in force regardless of employment status, as long as the premiums are paid. This portability provides individuals with more security and control over their insurance coverage, ensuring that their beneficiaries are protected even during career transitions.

While the other options highlight certain features or limitations of group life insurance, they do not capture the pivotal issue of coverage cessation associated with employment changes, which can lead to significant financial impact and potential loss of benefits for individuals. Therefore, the connection between employment and the continuation of coverage is a critical consideration when evaluating group life insurance policies.