What is group life insurance designed to cover?

Group life insurance is designed to cover multiple individuals under a single policy. This type of insurance is typically offered by employers or organizations as part of an employee benefits package, providing life coverage to a group of people, usually employees. The primary advantage of group life insurance is that it provides a straightforward and often more affordable means of coverage since the risk is spread across a larger pool of individuals, typically resulting in lower premiums compared to individual life insurance policies.

Additionally, these policies usually do not require individual medical underwriting, making them more accessible for members of the group. It facilitates coverage for all eligible members, ensuring that even those who might struggle to obtain traditional individual life insurance can get coverage. This differentiates group life insurance from other types of life insurance, such as individual policies that cater to a single person’s needs.