Which policy is typically used to cover a group of employees through an employer, usually issued as annual renewable term with minimal insurability requirements?

Which policy is typically used to cover a group of employees through an employer, usually issued as annual renewable term with minimal insurability requirements?

• A. Term Life
• B. Group Life Insurance
• C. Variable Life Insurance
• D. Juvenile Life Insurance

Answer: (B)

Group life insurance is coverage arranged through an employer that protects a defined group of employees. It’s typically written as annual renewable term, so the policy renews each year and the premium formula often relies on the group’s overall risk rather than underwriting each person individually. Because the risk is spread across many lives, the insurer usually imposes minimal insurability requirements—sometimes allowing coverage without a medical exam up to a set limit as long as the employee remains in the group. This setup differs from individual term life, which requires personal underwriting; from variable life, which is a permanent policy with cash value; and from juvenile life, which covers a child. The described policy clearly aligns with group life insurance.

Group life insurance is coverage arranged through an employer that protects a defined group of employees. It’s typically written as annual renewable term, so the policy renews each year and the premium formula often relies on the group’s overall risk rather than underwriting each person individually. Because the risk is spread across many lives, the insurer usually imposes minimal insurability requirements—sometimes allowing coverage without a medical exam up to a set limit as long as the employee remains in the group. This setup differs from individual term life, which requires personal underwriting; from variable life, which is a permanent policy with cash value; and from juvenile life, which covers a child. The described policy clearly aligns with group life insurance.