Group Life Insurance isn't something a lot of us like to think about, and for good reason. But it's absolutely vital that you have it, especially if you have a partner and/or family to look after. Then, if you pass away unexpectedly, those you leave behind will have a vital line of financial support that can help replace your lost income, allowing them to maintain their standard of living and avoid financial hardship.So what is Group Life Insurance? Quite simply, it's a type of life insurance that is purchased by an employer or other organization for its employees or members. This type of life insurance is generally less expensive than individual life insurance because the insurance company is spreading the risk over a larger group of people.If you're looking into getting group life insurance for your staff, you want to get the best deal for both your company and your people. But sometimes, the amount of confusing jargon you encounter in your research can get in the way of that. To help you out, we've put together a list of the most commonly used terms in group life insurance, and quick explanations of what they mean, in words that one can easily understand if insurance is an entirely new subject to you.BeneficiaryThe beneficiary is a person or persons who will receive the death benefit from the insurance company if an employee dies. Beneficiaries may include the insured person's family members, such as spouses, children, or other dependents. It's important for the insured individual to keep the beneficiary designation up to date, especially in the case of life changes such as marriage, divorce, or the birth of children.ClaimA claim is a request for payment from the insurance company under the terms of the group life insurance policy. When the insured person covered under a group life insurance policy passes away, the designated beneficiaries must file a claim with the insurance company to initiate the process of receiving the payment.CoverageCoverage refers to the amount of money the insurance company promises to pay out to the designated beneficiaries if the insured employee dies. The coverage amount is also known as the death benefit or sum assured, and it is determined by the terms of the group life insurance policy. It's crucial for individuals covered by group life insurance to understand the extent of their coverage, including any limitations or exclusions outlined in the policy.DeductibleA deductible is the amount of money the insured must pay out of pocket before the insurance company will pay any claims. In group life insurance, however, there is typically no deductible. The beneficiaries typically receive the full predetermined coverage amount when a valid claim is submitted.Evidence of InsurabilityEvidence of Insurability refers to documentation that the insured must provide to the insurance company to prove that they are insurable. This information is needed by insurers to evaluate the potential financial risks of insuring the individual.ExclusionsIn group life insurance, exclusions refer to specific conditions or circumstances under which the insurance policy will not provide coverage or pay out a death benefit. These may include the situation in which the insured person has died by suicide or engaged in criminal activity. Exclusions may also apply where the insured person has provided inaccurate or incomplete information on their insurance application.ExecutorAn executor is an individual responsible for ensuring that the deceased person's wishes are fulfilled and that the estate is settled according to legal requirements. The role of an executor in the context of group life insurance only becomes significant when there are no designated beneficiaries, or when the designated beneficiaries are not alive at the time of the insured person's death. In this case, the executor will be involved in the process of distributing the funds in accordance with the deceased person's will or legal requirements.Joint life insuranceJoint life insurance is a type of life insurance policy that covers two individuals, typically a married couple or civil partners, under a single insurance contract. It is designed to provide a death benefit when one of the insured individuals passes away. The death benefit is either paid out to the surviving policyholder or their surviving beneficiaries.Life assuranceWhile 'life insurance' and 'life assurance' are often used interchangeably, they represent distinct types of coverage in the insurance world. In the United States, 'life insurance' typically refers to a policy that provides coverage for a specific term or period. If the policyholder passes away within this term, the policy disburses a death benefit to the beneficiaries; however, if the policyholder outlives the term, the policy expires without any payout. Conversely, 'life assurance,' which is less prevalent in the US, is a 'whole of life' policy, ensuring a payout upon the policyholder's death regardless of when it occurs. This type of policy often includes an investment component, allowing it to accumulate cash value over time.PolicyownerThe policyowner is the person or entity who owns the life insurance policy. In group life insurance, that will usually be the employer or its representative. Depending on the specific policy terms, the policyowner may have the authority to make decisions such as choosing beneficiaries, modifying coverage, and accessing certain policy benefits. PremiumThe premium is the amount of money that the policyholder pays to the insurance company for the group life insurance policy. It is typically paid monthly, though not exclusively.Revocable beneficiary A revocable beneficiary is a term used by life insurers to describe a beneficiary whose designation can be altered or revoked by the policyowner without requiring the consent of the beneficiary. In other words, the policyowner retains the flexibility to change or remove the revocable beneficiary from the policy.Term of InsuranceThe Term of Insurance refers to the specified length of time during which the insured is protected by the policy.UnderwriterAn underwriter is a professional in the insurance industry responsible for assessing and evaluating the risk associated with insuring a person or entity and determining the terms and conditions of the insurance coverage.Whole Life InsuranceWhole Life Insurance is a type of group life insurance policy that provides lifetime coverage and accumulates cash value. It normally combines a death benefit with a cash value component, offering both protection and a savings or investment feature.