How does group life insurance differ from individual life insurance?

Group life insurance primarily covers multiple individuals under a single contract, which is a fundamental characteristic that distinguishes it from individual life insurance. In group life insurance, typically offered through employers or other organizations, one master policy is created, providing coverage to a group of people, often without the need for individual medical underwriting. This structure allows for a more efficient and cost-effective method of providing life insurance, as the risk is pooled among a larger number of individuals.

In contrast, individual life insurance requires each person to apply for their own policy and typically undergo medical underwriting, leading to personalized premiums based on the individual's health and lifestyle factors. This means that while group policies often provide coverage with fewer health qualifications, individual policies can offer tailored coverage that suits specific needs.

The other options do not accurately represent the main differences in the insurance types. For instance, it is not necessarily true that individual life insurance is cheaper than group insurance; in fact, group policies can often be more affordable due to the collective bargaining power and risk pooling. Additionally, group life insurance is not exclusive to government employees but is generally available to a wide range of organizations, including private companies. Lastly, individual policies can be subject to cancellation under certain conditions, and that is not solely at the discretion of the