What Is Group Ordinary Life Insurance?

Group ordinary life insurance is a product utilized by businesses that want to provide life insurance to all of their employees. This is essentially a group life insurance plan that is sold at a discount to the price of an individual life insurance plan.

How It Works

With this type of life insurance, the premiums will typically be paid out of an automatic payroll deduction by the company. The money that is used for premiums will go towards paying for each employee's death benefit as well as a cash value. This policy accumulates a cash value over the years that can be taken by an employee if she cancels her policy. 


In many cases, individuals can benefit from this type of insurance because they do not necessarily have to show that they have any elements of insurability, as they would with individual insurance policies. As long as they enroll within a certain amount of time of working at the company, they will be included in the plan without any issues. Another benefit is that individuals can save money on this type of life insurance policy since they are buying it with a group. You can generally buy policies for your family members as well.