Group insurance provides coverage for a group of persons, usually employees of a company, under one master contract.

Most employers provide group insurance, either medical or life or both, as a benefit for the employees. When the employer pays the entire premium, the plan is considered a non-contributory plan. If the employees must pay a portion of the premium, it’s a contributory plan. Group insurance is available at lower rates than individual insurance, because the constant influx of new members into the group keeps the age and health of the group stable. Medical examinations aren’t normally required for a group insurance policy. The policy is typically issued to an employer for the benefit of employees, or to members of an association, for example, a professional membership group. The individual members of the group hold certificates as evidence of their insured status. The insurer maintains the list of the insured.