What is defined as group life insurance?

Group life insurance is defined as a policy that covers a group of people under a single contract. This type of insurance is typically offered through employers, associations, or other organizations and is designed to provide life insurance protection for all eligible members of the group. The key characteristic of group life insurance is that it simplifies the underwriting process, allowing members to obtain coverage without undergoing individual health assessments, which can be particularly advantageous in promoting wider access to life insurance.

In addition, group life policies often feature lower premiums compared to individual policies, as the risk is spread across many participants. When a member of the group passes away, the coverage amount is paid out to the beneficiary designated by that member, providing financial support in times of loss.

The other options describe scenarios that do not accurately capture the essence of group life insurance. For example, covering individuals across multiple families does not reflect the typical organizational structure that group life policies rely on. The concept of a policy for any group of friends is too informal and does not align with the contractual and organized nature of group insurance. Lastly, insurance exclusively for high-risk occupations falls outside the definition of group life insurance, as it relates more to specific underwriting for those jobs rather than a collective coverage plan.