Group life insurance,
Definition of Group life insurance:
Group life insurance is a single contract for life insurance coverage that extends to a group of people. By purchasing group life insurance policy coverage through an insurance provider on a wholesale basis for its members, companies are able to secure costs for each individual employee that are much lower than if they were to purchase an individual policy.
Group life insurance is offered by an employer or another large-scale entity, such as an association or labor organization, to its workers or members. It is fairly inexpensive, may even be free, and is pretty common nationwide. It has a relatively low coverage amount and is typically offered as a piece of a larger employer or membership benefit package.
Life insurance coverage provided to a group of people, most often employees of the same company. These policies carry a lower cost than the policies offered to individuals, due to the tax cuts offered to the insurer, the use of adverse selection, and the sharing of expenses.
How to use Group life insurance in a sentence?
- Group life insurance is fairly inexpensive and may even be free.
- Group life insurance is offered by an employer or another large-scale entity, such as an association or labor organization, to its workers or members.
- Some organizations require group members to participate for a minimum amount of time before they are granted coverage, which is generally pretty basic.
Meaning of Group life insurance & Group life insurance Definition