Group Insurance

What Does Group Insurance Mean?

Group insurance is a policy provided to individuals who belong to a specific group, such as employees of a company or members of an organization. Typically, the coverage ends when the insured individual is no longer a member of the group.

Insuranceopedia Explains Group Insurance

The most common type of group insurance is health insurance benefits for full-time employees. Group policies must be egalitarian, meaning that if an employer covers one full-time employee, they are generally required to cover all full-time employees. Part-time employees may also receive coverage, depending on the employer’s policies.

The premium may be fully paid by the employer or shared between the employer and the employee.

Since the insurer can sell multiple policies at once, group insurance is typically more affordable per insured individual compared to a similar individual policy.