What is the purpose of group life insurance?

Group life insurance primarily serves the purpose of providing life insurance coverage to a group of individuals, often employees of a company or members of an organization, under a single contract. This type of policy is designed to offer financial protection to the beneficiaries of insured individuals in the event of their death.

The rationale behind offering group life insurance is that it simplifies coverage for large numbers of people, making it easier and more cost-effective than individual policies. By having a larger pool of insured individuals, insurance companies can spread the risk and typically offer lower premiums compared to individual life insurance policies.

While it's true that group life insurance is often provided as part of an employee benefits package, it does not specifically restrict coverage to employees who die during working hours, nor does it solely focus on retirees. It also generally does not include a cash value component, which is a feature of permanent life insurance policies rather than term life policies usually provided in group plans. Furthermore, most group policies do not require individual medical examinations, as the underwriting process is typically more lenient for group policies compared to individual life insurance.

Thus, the correct answer emphasizes the provision of coverage for employees under a group policy, reflecting its role in offering financial protection to the larger group rather than focusing on the specifics