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Group life

Group Life Insurance, unlike an individual life insurance policy, is not based on the risk associated with an individual person.  Group life insurance policies are established based on the risk factor of the group as a whole, so higher risk members of the group are protected from being adversely singled out and either excluded or forced to pay more.

As Group Life Insurance is generally based on the risk characteristics of the group or company as a whole, the individual members do not need to go through an intensive underwriting process. In addition, many groups purchasing group life insurance generally share many common characteristics linking all members of the group; for example a group of lawyers are all generally considered to be healthy to perform the tasks at hand and rarely engage in risky behaviour related to their jobs. This produces savings for members, as it lowers the costs of underwriting and issuing policies.