Group Life Insurance
As the term suggests, group insurance is a type of insurance that covers a group of people under one single policy. As it provides the same type of protective insurance cover to all members of the group, it eliminates the need for each of them to individually buy a policy. All members are entitled to insurance coverage under one scheme. Usually, this type of insurance policy is provided by organizations to its employees. The group insurance may also include members of a society, club, banks, and professional’s association.
Both formal and informal groups can be covered under the group insurance policy. There are formal groups where all the members of the group work for the same employer, or same organization. The informal group on the other hand comprises of people who are not working in the same professional circle but are a part of the same cultural group, housing society, or are the holders of same credit cards.
There are certain benefits to group insurance plans which work for not only the group members but also the group leader or provider.
