What is "group life insurance"?

Group life insurance is a type of insurance that provides coverage for a group of individuals, typically offered through an employer or an organization. This approach allows for a more streamlined and cost-effective way to provide life insurance benefits to employees or members, as the risk is spread across a larger pool of people, which usually results in lower premiums compared to individual life insurance policies.

This type of insurance generally comes with certain advantages, such as simplified underwriting processes, as many group policies do not require individual health assessments, making it easier for participants to obtain coverage. Typically, the employer pays for part or all of the premium, making it an attractive benefit for employees.

The other options present characteristics that do not pertain to the fundamental nature of group life insurance. For instance, policies that are limited to individuals above a certain age or those that cover only family members do not reflect the essence of group coverage, which is designed for a collective instead of individuals or specific family units. Additionally, offering a standard life insurance plan without restrictions doesn't capture the unique characteristics and structure of group life insurance, which is inherently linked to the collective membership of a group rather than to individual buyers.