Group insurance is defined as the coverage of several individual persons under one comprehensive insurance policy issued by employers, associations, unions, or other qualified groups. Usually for the purpose of protecting and providing for employees, group insurance covers individuals so long as they remain in employment. Because group insurance covers a number of individuals, insurers frequently sell their services at lower premium rates than ordinarily obtainable.
Unlike wholesale insurance, group insurance requires 50 or more employees. These employees are not required to make individual applications and receive certificates referring to the master policy issued to the employer.
[Last updated in February of 2022 by the Wex Definitions Team]