What type of insurance covers a group of people under one policy?

Group insurance is designed to cover a group of people under a single policy, which typically provides life insurance benefits to all members of the group. This type of insurance is often offered by employers or organizations as part of a benefits package. The key feature of group insurance is that it simplifies coverage by having one policy that covers multiple individuals, often at a lower cost than individual policies due to the shared risk among the group.

Group insurance plans usually do not require individual medical examinations for each participant, making access to coverage easier. Premiums are often lower than individual policies because the risk is spread across the entire group. Additionally, this type of insurance may also provide certain benefits that are not always available in individual policies, such as guaranteed renewability and portability options.

In contrast, individual insurance involves separate policies for each person, tailored to their individual needs and risks. Universal insurance refers to a flexible permanent life insurance product that combines a death benefit with a cash value component, while term insurance provides coverage for a specific period but does not build cash value.