A Group Life Insurance is a specific insurance coverage for multiple persons. It is usually the kind of insurance offered by businesses, labor unions, organizations and associations to their employees. This kind of insurance policy offers a coverage that is based on the risk factor of the entire group as a whole.
Group Life Insurance intends to spread the risk of claims over a wider group of people.
Policies for Group Life Insurance are based on company experience and not on the individuals personal health situation. With this kind of Insurance, everyone is indiscriminately put together under one package regardless of several key factors such as gender, health history, etc. This kind of scenario can prove more beneficial to individuals with poor health and happen to be part of the group, compared to individuals with the best of health and also happen to be part of the group. This is so because individuals get to pay the same premiums equally amongst each other even when each member may have different claims. In Group Life Insurance Coverage you will have members who are healthy and do not file claims and seriously ill ones who need to file claims more often than the others.