What type of insurance policy is group life insurance generally written as?

Group life insurance is typically written as term life insurance. This is because term life insurance provides coverage for a specific period of time, which aligns with the needs of many group policies. In group life insurance, coverage is often offered to a group of people, such as employees of a company, and is designed to provide a death benefit to beneficiaries if the insured individual passes away during the term of the policy.

One key reason for using term life insurance in group settings is its affordability. Because the risk is spread over a larger group, term policies generally allow for lower premiums compared to other types of permanent insurance options. Permanent policies like whole life, universal life, or variable life involve cash value accumulation and are usually more complex and expensive, making them less common for group offerings where the emphasis is on simple, cost-effective coverage. This structure enhances the accessibility of insurance for employers to provide their employees, ensuring that more individuals receive life insurance benefits without significant financial burden.