What defines a group life insurance policy?

A group life insurance policy is defined by its coverage of a collection of individuals under a single contract, typically provided by an employer, trade union, or other organization. This type of policy is designed to offer life insurance protection for a specified group, where the beneficiaries may be the individuals themselves or their families. The pooling of risk among a larger group means that the premiums can be lower compared to individual policies, making it an attractive option for those covered under it.

The benefits and features of group life insurance often include simplified underwriting processes, where individual health assessments may not be required, and the ability to extend coverage to employees or members without stringent limitations. It is also important to note that group policies might provide a basic level of coverage to employees, which they may choose to supplement with individual policies.

Other options, such as policies designed exclusively for individuals in high-risk jobs, family-only coverage, or short-term life insurance, do not align with the fundamental nature of a group life insurance policy, which focuses on company-sponsored coverage for a broad group of individuals.