Generally, it’s not possible to cash out your group life insurance plan. Most employers offer group term insurance coverage to their employees. A term plan is a pure-risk life cover and offers no maturity benefits. It acts as a financial safety net for the family of the policyholder, if the primary breadwinner passes away unexpectedly. Since the plan offers only death benefits, it is not possible to cash out a term plan. The same applies for group term life cover as well. 

However, few employers offer other types of group life insurance cover like group ULIP plans, group annuity plans, etc. These plans have insurance cum investment components and help employers build the retirement funds of their employees. 

So, if you’re looking to cash out your group plan, the first step is to check with your HR to find the type of group cover offered to you as part of your employment package. If the group plan has an investment component, then you may be able to partially withdraw funds before plan maturity, depending on the type of plan.

Additional ReadingWhat Is Group Insurance Policy