Group Insurance

What Does Group Insurance Mean?

Group insurance is a policy provided to individuals who belong to a specific group, such as employees of a company or members of an organization. Typically, the coverage ends when the insured individual is no longer a member of the group. When that happens with an employer health plan, former employees may be eligible to keep the same plan temporarily through COBRA insurance, though they generally have to pay the full premium themselves.

Insuranceopedia Explains Group Insurance

The most common type of group insurance is health insurance benefits for full-time employees. Group policies must be egalitarian, meaning that if an employer covers one full-time employee, they are generally required to cover all full-time employees. Part-time employees may also receive coverage, depending on the employer’s policies.

The premium may be fully paid by the employer or shared between the employer and the employee.

Since the insurer can sell multiple policies at once, group insurance is typically more affordable per insured individual compared to a similar individual policy. Workers who don’t have access to an employer plan can compare individual health insurance quotes to find a policy on their own.