Additionally, group insurance policies can be either compulsory or voluntary, each with specific underwriting requirements and implications for coverage and premiums.
Group life insurance is typically offered as a piece of a larger employer or membership benefit package.
Carriers are interested in gaining customers and will cut prices a bit to take account of their lower costs.
In Canada, group insurance is usually purchased through larger brokerage firms because brokers receive better rates than individual companies or unions.
In India, broker procured group term insurance does not necessarily have any price advantage to the buyer, i.e., the master policy holder.
Most professionally run companies today provide group health insurance as a part of their Employee Welfare programs.
Underwriting requirements even for voluntary group life cover are far less onerous than for similar insurance on individual lives.