Group life insurance is defined as insuring a group of people under a single contract. The most accurate description is:

Group life insurance is defined as insuring a group of people under a single contract. The most accurate description is:

• A. Individual Life Policy
• B. Group Life Insurance Under a Single Contract
• C. Annuity Contract
• D. Health Insurance Policy

Answer: (B)

Group life insurance is a master policy that covers a group of people under one contract. The policy is issued to a sponsor, like an employer, and members receive certificates of coverage under that single master policy. Because there’s one contract serving the whole group, underwriting focuses on the group as a whole rather than on each individual, and premiums are set for the group rather than for each person. Coverage amounts are often tied to salary or a fixed amount, and the coverage can typically be converted to individual policies later if the member leaves the group or when certain conditions apply. This isn’t an individual life policy, which would involve a separate contract for each person. It isn’t an annuity contract, which provides retirement income, and it isn’t a health insurance policy, which covers medical expenses.

Group life insurance is a master policy that covers a group of people under one contract. The policy is issued to a sponsor, like an employer, and members receive certificates of coverage under that single master policy. Because there’s one contract serving the whole group, underwriting focuses on the group as a whole rather than on each individual, and premiums are set for the group rather than for each person. Coverage amounts are often tied to salary or a fixed amount, and the coverage can typically be converted to individual policies later if the member leaves the group or when certain conditions apply.

This isn’t an individual life policy, which would involve a separate contract for each person. It isn’t an annuity contract, which provides retirement income, and it isn’t a health insurance policy, which covers medical expenses.