Group life insurance policies are generally written as what type of insurance?

Group life insurance policies are typically structured as annually renewable term insurance. This type of policy allows for coverage that can be renewed each year without requiring proof of insurability, making it suitable for groups where members may join or leave over time, such as employees of a company.

The focus on annually renewable term insurance means that the coverage is temporary and does not build cash value, reflecting the nature of most group policies that aim to provide affordable, basic life insurance coverage. This aligns well with the objectives of group life insurance, which is usually offered as a benefit to employees, enabling them to have life insurance protection without the hassle of individual underwriting processes.

Whole life insurance and universal life insurance are designed to accumulate cash value and are generally not used for group coverage purposes due to their complexity and cost. Term life insurance can be a component of group policies; however, it is distinct from the specific structure of annually renewable term insurance, which is characteristic of most group arrangements where renewal is simple and straightforward.