Group insurance policies are typically written as which type of policy?

Group insurance policies are typically structured as annually renewable term policies. This means that the coverage is provided for a specified term, usually one year, and can be renewed each year without requiring evidence of insurability, as long as the group remains eligible. This structure allows employers to offer life insurance to their employees at lower costs compared to individual policies, as the risk is spread across the entire group.

Additionally, the annually renewable structure is beneficial because it ensures that coverage can be maintained easily, making it practical for companies that regularly reassess their employee benefits annually. It is especially appealing for groups, such as those associated with a workplace, because it simplifies the administration of the insurance while also providing flexible terms that can adapt as the group changes over time.

The other types of policies mentioned, such as whole life, universal life, and standard term life policies, are less common for group insurance since they typically involve longer-term commitments or accumulate cash value, which are not as attractive or necessary for group coverage scenarios.