What is Group Insurance?

Group insurance covers more than one person, typically a cluster of employees and their dependents, or the members of a professional association. Group insurance is typically offered for health insurance and life insurance. This insurance is usually renewed on an annual basis.

Advantages of Group Insurance

Selling group insurance reduces selling costs for insurers, which allows them to offer reduced prices to employers. Another advantage for the insurer is that these policies are sold to people who are in groups for reasons other than wanting to buy insurance, so they present (as a whole) an average insurance risk. From the perspective of the buyer, a key advantage is that group insurance is being sold at near-wholesale rates, so its cost is reduced.