What type of insurance coverage do employees under a group life insurance plan typically receive?

Employees under a group life insurance plan typically receive term life insurance coverage. This type of insurance provides a death benefit to the beneficiaries of employees who die while they are covered under the plan, but it does not accumulate any cash value over time. Term life insurance is well-suited for group plans because it is generally more affordable for large numbers of employees and can easily be provided as a benefit by employers.

In group life policies, the coverage is usually offered without the need for individual medical underwriting, which simplifies the process and allows for broader participation among employees. This setup is especially beneficial for employers looking to provide basic life insurance as part of their employee benefits package. The term nature of the coverage means that it is effective for the duration of employment or until the policy is renewed, making it a practical solution for employers and employees alike.