What is group life insurance?

Group life insurance is a type of life insurance policy that is offered to a group of individuals, typically by an employer, a professional organization, or an association. This kind of insurance is designed to provide coverage for all eligible members of the group under a single contract, simplifying the enrollment and management processes. The key feature of group life insurance is that it often offers more affordable premiums than individual policies, as the risk is spread across a larger group.

In group life insurance, coverage may be provided as a basic benefit with options for additional voluntary coverage, allowing members to enhance their benefits as needed. This type of insurance facilitates access to life insurance protection for members who may not qualify for individual coverage due to health issues or who may find individual policies more expensive.

While other types of insurance, such as private policies or family policies, cater to specific individuals or families, the essence of group life insurance lies in its collective approach. This structure contributes to the accessibility and cost-effectiveness that group life insurance offers to its members.