What differentiates group life insurance from individual life insurance?

The key distinction between group life insurance and individual life insurance lies in the structure of the coverage. Group life insurance covers multiple individuals under a single policy, which is often offered by employers or organizations as a benefit to their members or employees. This collective approach allows for lower premiums since the risks are spread across a group of people.

In contrast, individual life insurance involves a separate policy for each insured person, which means that the premiums and terms can vary significantly based on individual health assessments and underwriting. This distinction highlights the convenience and cost-effectiveness of group insurance, making it an attractive option for many when compared to individual policies.

While there are advantages and disadvantages to each type of insurance, the primary differentiator remains the grouping of coverage under one policy in group insurance, whereas individual life insurance is tailored to each person's specific situation.