What is group insurance?

Group insurance refers to a type of coverage that is designed to protect a collective group of individuals under a single insurance policy. This arrangement typically involves a common characteristic, such as employment with the same employer, membership in a union or organization, or affiliation with a specific group. The advantage of group insurance is that it generally offers lower premiums than individual plans, as the risk is spread across a larger number of participants.

This collective nature often allows for benefits and coverage that an individual may find difficult to obtain or afford on their own. For instance, in many workplace settings, employer-sponsored group insurance provides health, dental, and life insurance options to employees and often their families without individual underwriting processes, which streamlines access to important coverage.

In contrast, other options suggest individual coverage, family-only plans, or those tied to self-employment, which do not encompass the broader scope and advantage of group insurance as it serves multiple individuals under one policy rather than singularly focusing on individuals or specific family units.