What is 'group insurance'?

Group insurance refers to a type of insurance coverage that is provided to a collective group of people, often through an employer or an organization. This form of coverage is typically designed to offer benefits to employees and their families, helping to lower costs for individuals as the risks are spread across the entire group. Because the insurance is purchased in bulk, group insurance often comes with lower premiums compared to individual insurance plans.

Furthermore, group insurance plans usually require less stringent medical underwriting, which can be advantageous for individuals who may have pre-existing conditions. Members of the group generally receive standardized benefits, which can create a more comprehensive safety net for health, life, or other types of insurance under the same plan. The collective nature of this coverage fosters a sense of community and shared responsibility among members.

Other options describe different aspects of insurance but do not accurately reflect the definition of group insurance. Individual insurance is tailored for personal needs, high-risk individual coverage typically addresses specific cases rather than a broader group, and insurance obtained through a broker does not specifically categorize the insurance as group-oriented. Thus, the essence of group insurance lies in its collective approach to providing coverage to multiple individuals through a single policy, which makes it both cost-effective and accessible.