What are Combination Plans?

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  • Written By: Malcolm Tatum
  • Edited By: Bronwyn Harris
  • Last Modified Date: 18 October 2019
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In the world of insurance, combination plans are life insurance policies that combine the best features with various types of coverage. Often, a combination plan will provide a mix of benefits and terms that are found in both whole life coverage and term life insurance policies. The use of combination plans is more common as part of the benefit package extended to the employees of a corporation rather than an individual insurance package.

One of the advantages of participating in a group combination plan is that the employee has some control over the structure of his or her benefits. If the main focus for the employee is providing some sort of benefit to loved ones in the event of the death of the insured party, combination plans often provide several ways to accomplish this. When there is a desire to accumulate cash value in the coverage over time, combination plans can also make this possible. In many cases, the cash value is accrued on a tax-deferred basis, which may also be attractive to the employee.


Even if the employee starts out with one focus and later chooses to change the strategy regarding the life insurance coverage, it is a very simple matter to make adjustments within group combination plans. Many corporate plans allow at least one period per calendar year where an employee can make changes in the structure of the benefit. Other plans allow the employee to make adjustments when a major life change occurs, such as a marriage, birth of a child, or a divorce.

Some combination plans also allow the insured parties to make selections in investments that will help determine the ultimate value of the life insurance policy. When that is the case, the combination plans not only offer the peace of mind that comes with any type of life insurance coverage, but also allows the employee a greater role in making sure the plan provides as much protection as possible for the premium paid.


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