Group Life Insurance
Categories: Insurance, Company Management
Group health insurance involves buying health coverage in bulk. This structure allows the insurance company to offer lower premiums; they sign up a bunch of people at once, so they can give a break on price. Typical bulk pricing model.
Group life insurance works the same way. Only, in this case, the type of insurance is different. Rather than health insurance, it's life insurance getting purchased in bulk.
You run a secret society called The Dedicated Order of the Sparkling Ram. You have 500 members. You decide to get a group life insurance policy that covers all your members. The Order of the Sparkling Ram becomes the policy's holders and the insurance covers all 500 members. Meanwhile, the per-person rates are lower than each member could get if they bought their own insurance separately.