Group Insurance

What Is Group Insurance?

Group insurance is a type of insurance plan that covers a number of people in the same contract. Such a plan provides the same level of insurance coverage to all members of a group irrespective of their age, gender, occupation, or socio-economic status.

Group insurance eliminates the need to buy a separate insurance plan for each member. Often, employers cover their employees with a group insurance plan as part of the payout benefits. Such a plan provides cover to group members and their spouses, children and dependent parents.

Features of Group Insurance

Here are some of the key features of group insurance.

• As risk spreads over a large number of people, a group insurance plan provides standardized coverage at competitive premium rates. This means that the coverage is the same for all members of a group.
• Irrespective of the size of the group, group insurance covers all members under the same plan. The plan may be in the form of group life insurance, group health insurance, group travel insurance or group personal accident insurance.
• A group can comprise employer and employees or non-employer and employees such as holders of a credit card or members of a social or cultural association.
• The manager of the group gets a master policy in the name of the group.
• Premium is charged to the members or can be paid by the group.
• A member is covered as long as he is a part of the group. The cover ceases if a member leaves the group.