Traditionally, life insurance pays death benefits to beneficiaries of employees who die during their working years. There are two main types of life insurance:
Survivor income plans, which make regular payments to survivors.
Group life insurance plans, which normally make lump-sum payments to specified beneficiaries.
Protection provided by one-year, renewable, group term life insurance, with no cash surrender value or paid-up insurance benefit, is very popular. Frequently, health insurance programs offer this coverage.
You should use the same principles for selecting a life insurance program as you do for selecting health insurance.
