Dear Insurance Adviser,
I’m resigning from my job of 15 years. Will I receive any cash from the life insurance that I obtained through my employer.
99% of the time, group life insurance is term insurance with no cash value. This is true whether the group insurance is purchased and paid for by the employer or the employee.
Sometimes, however, an employer will make group permanent life insurance available for purchase by employees, who pay the premiums on a payroll deduction basis and at a discounted price. If this is your type of policy, then yes, you can get cash value from your group life insurance. If your life insurance through work does not fit this description, then the answer to your question is no.
Be aware that most group term life insurance is convertible to permanent life insurance with cash value if the conversion is applied for within 30 days of leaving employment. If your health disqualifies you from obtaining life insurance in the open market, I recommend exploring the conversion option.
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