Covering people one at a time is expensive. Group insurance provides coverage to a defined group of people—usually employees of a company or members of an association—under a single master policy. Individual certificates evidence each person’s participation.

Underwriting focuses on the group’s characteristics rather than each individual’s health or risk. Employer-sponsored health, life, and disability plans are the most familiar forms. Premiums may be paid entirely by the employer, entirely by the members, or shared. Participation requirements help control adverse selection.

Group contracts can often be issued with minimal or no individual medical evidence when the group is large and membership is based on employment rather than insurance demand. Portability and conversion rights at termination of eligibility are important policy features. Group insurance remains the primary vehicle for employee benefits in many economies.

• Coverage of multiple people under one master policy
• Common for employer-sponsored benefits
• Underwritten on group characteristics
• Reduces administrative cost per person