QS Study

Group insurance is an insurance that covers a group of people, usually who are the members of societies, employees of a common employer, or professionals in a common group. It is an insurance relating to life, health, or accident and covering several persons, especially the employees of a company or organization, under a single contract at reduced premiums. It may offer life cover, health cover, and/or other types of personal insurance.

Life insurance offered by an employer or large-scale entity (i.e. association or labour organization) to its workers or members. Group life insurance is typically offered as a piece of a larger employer or membership benefits package. It is a type of life insurance in which a single contract covers an entire group of people. When group term insurance is provided through your employer, the employer usually pays for most (and in some cases all) of the premiums. Another side, a group health insurance plan is a health insurance plan that provides coverage to members of a group that tends to be employees of a company or members of an organization.

By purchasing coverage through a provider on a “wholesale” basis for its members, the coverage costs each individual worker/member much less than if they had to purchase an individual policy. Those receiving coverage may not have to pay anything “out of pocket” for policy benefits or they may elect to have their portion of the premium payment deducted from their paycheck.

Related Study: