What is Group Insurance?

Group insurance is a type of insurance policy that covers a group of people under a single contract. Typically, it is offered by employers, associations, or organizations to their employees or members. Instead of purchasing individual policies, group members enjoy insurance benefits as part of a larger plan. The most common example of group insurance is the health coverage provided by companies to their staff.

How Does Group Insurance Work?

In a group insurance policy, the organization or employer acts as the policyholder. The insurer issues a master contract to cover all eligible members. The cost is often shared between the employer and employees, or fully paid by the employer as part of an employee benefits package.

Employees usually get enrolled automatically or voluntarily during onboarding, and the premium rates are generally lower than individual plans due to the risk being spread across the group.

Types of Group Insurance Policies

There are several types of group insurance policies available, depending on the needs of the organization and its members:

Group Health Insurance

Covers hospitalization, surgery, maternity, and day-care treatments.

Group Life Insurance

Provides a lump sum to the nominee in case of the insured member’s death.

Group Personal Accident Insurance

Offers financial support in case of disability or death due to accidents.

Group Term Insurance

A term life insurance plan that offers coverage for a specific time period.

Group Travel Insurance

Covers employees traveling for business purposes against travel-related risks.