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LSDefine
Simple English definitions for legal terms
group insurance
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A quick definition of group insurance:
Group insurance is when a bunch of people get insurance together under one big policy. This usually happens when an employer, union, or other group wants to make sure everyone is covered. It's cheaper than getting insurance on your own because the insurance company can give a discount for covering a lot of people at once. You don't have to apply for insurance yourself if you're part of a group, and you'll get a certificate that shows you're covered under the group policy.
A more thorough explanation:
Definition: Group insurance is a type of insurance that covers a group of people under one policy. This policy is usually provided by employers, unions, or other organizations for the benefit of their members or employees. Group insurance is designed to protect individuals and provide them with financial support in case of unexpected events.
For example, if you work for a company that offers group insurance, you and your colleagues will be covered under the same policy. This means that if any of you experience a medical emergency or need to take time off work due to illness, you will be able to receive financial support from the insurance company.
Group insurance is often more affordable than individual insurance because the risk is spread out among a larger group of people. This means that the premiums (the amount you pay for insurance) are usually lower than they would be for an individual policy.
However, group insurance usually requires a minimum number of people to be covered. For example, some insurance companies may require at least 50 employees to be covered under a group policy. This is because the insurance company needs to be able to spread the risk among enough people to make it financially viable.