What is the primary difference between group life insurance and individual life insurance?

The primary difference between group life insurance and individual life insurance lies in the structure of coverage. Group life insurance covers multiple individuals—often employees within an organization—under a single collective policy. This arrangement allows for a streamlined application process and generally lower premium costs for each individual, as the risk is spread across a larger group.

In contrast, individual life insurance is tailored to specific individuals, requiring personal underwriting and often leading to higher premiums due to the unique risk profiles of each applicant. The option for group life insurance is typically provided by an employer or a similar entity, making it a more straightforward and accessible option for many.

Other options suggest characteristics that do not necessarily define the fundamental difference between the two types of insurance. For example, while individual life insurance can sometimes be more expensive, this is not a definitive criterion since it can vary based on many factors. Additionally, group life insurance is generally not purchased privately as it is linked to employment, and individual life insurance can cover individuals or families, not exclusively one or the other.