Group Insurance

Insurance provided to members of a formal group such as employees of a firm or members of an association is group insurance. Group insurance is distinguished from individual insurance in which single policies are sold to one person at a time and from social insurance (e.g., unemployment insurance, social security), which is sponsored by the government.

A policy that provides coverage to employees of an organization and sometimes their dependents. Because the cost is shared by a large number of people, group life and health plans frequently offer broader coverage at lower costs than individual policies.

Insurance plan under which a number of persons and their dependents are insured by a single policy, issued to their employer or an association with which they are affiliated. Individual certificates are given to each insured person.

Any insurance policy or health services contract by which groups of employees (and often their dependents) are covered under a single policy or contract, issued by their employer or other group entity.