What defines "group life insurance"?

Group life insurance is specifically characterized as coverage that is offered to a collective group of individuals, often facilitated through an employer. This form of insurance typically provides a blanket policy that covers all eligible participants, which can include employees of a company or members of an association. The primary advantage of group life insurance is that it often requires minimal underwriting, making it more accessible for individuals in the group compared to individual life insurance policies.

In group life insurance, the cost is usually lower than individual policies because the risk is spread across many people, which creates a larger pool for the insurer. This collective approach also simplifies the administrative process for employers who provide this benefit to their employees. Such policies are designed to provide basic coverage, and often options for additional coverage can be chosen by individuals within the group.

The other options do not accurately describe group life insurance. Individual credit-based life insurance, family-tailored policies, and insurances without beneficiary requirements do not reflect the primary attributes or functions of group life coverage.