Association Group Insurance
What Does Association Group Insurance Mean?
Association group insurance is a type of insurance that an organization or formal group purchases on behalf of its members, allowing them to benefit from lower premiums per member. The discounted price makes it an attractive membership benefit for various types of associations.
Insuranceopedia Explains Association Group Insurance
When an insurance company sells policies in bulk rather than individually, it saves time and money. These savings are passed on to policyholders in the form of discounts on group insurance plans.
However, to qualify for association group insurance, the group must be a recognized and official organization, such as the AARP. People cannot create an association solely for the purpose of purchasing insurance. These policies are intended to serve as membership benefits. Without this requirement, insurance companies would be vulnerable to adverse selection.
