What is a significant drawback of employer group life insurance?

A significant drawback of employer group life insurance is that the coverage amount is determined by the employer. This can be a limitation for employees, as they often have little to no influence over the amount of coverage they receive. The amount offered may not adequately reflect an individual’s personal insurance needs or financial obligations, which can leave them underinsured in relation to their current life situation.

In contrast, while group life insurance is often portable and can be taken with you, this is not a drawback but rather a feature that allows for flexibility. Additionally, group life insurance commonly covers more than just accidental death; it typically pays out benefits for death due to various causes. Lastly, employer group life insurance generally does not include a cash value component like some permanent individual life insurance policies do; this is another distinction rather than a drawback. Therefore, the determination of coverage amount by the employer is what significantly impacts the adequacy of protection for the employees.