What is group life insurance?

Group life insurance is a specific type of life insurance designed to provide coverage to a collection of individuals, usually linked through a common bond, such as employment with the same company or membership in an organization. This arrangement allows members of the group to be insured under a single policy, often resulting in more favorable terms and lower premium costs compared to individual policies.

Typically, the employer or the organization holds the master policy and pays the premiums, while the individuals covered may receive life insurance benefits without having to undergo extensive medical underwriting. This makes it an accessible option for many people, as it provides them with essential financial protection in the event of death.

In contrast, the other options provided do not accurately depict the characteristics or structure of group life insurance. The other responses either limit coverage to specific individuals, imply a transitional nature of the coverage, or suggest a focus on high-risk individuals, which is not a defining aspect of group life policies. Such policies aim to benefit a wider demographic, making coverage more inclusive and affordable.