What defines a group life insurance policy?

A group life insurance policy is primarily characterized by its coverage of a group of people, often provided through an employer or an association, which distinguishes it from individual life insurance policies. This type of insurance is designed to offer coverage to multiple individuals under a single contract, meaning that the policy is issued to the group as a whole rather than to each insured person individually.

The primary benefits of group life insurance include lower premiums for members due to the collective risk pool, easier underwriting processes, and often coverage without the need for individual medical examinations. Members of the group typically receive the policy coverage as part of their employment benefits, making it a valuable form of protection for employees and their dependents.

By focusing on coverage for a collective body rather than individual families, specific occupations, or high-risk individuals, group life insurance effectively addresses the needs of large groups, enabling broader access to life insurance protection.