Group Insurance : It is a scheme which provides insurance to many people under one insurance policy. It is generally provided to the employees working under one employer. It is very economical for the employees, in terms of premium payable, as it is very less, due to the government support which encourages it as a strong tool of social security.
The three main features of Group Life Insurance are :
(a) Insurance provides risk coverage to the employees as long as they remain in the service of the employer.
(b) It is contract between the insurance company and the employer.
(c) The premium is generally paid jointly by the employee and the employer.