InsuranceFinancial Glossary
Group Insurance
Definition
A single insurance policy that covers a group of people, typically employees of a company. Group health insurance and group term life insurance are commonly offered as employee benefits. Premiums are usually lower than individual policies because the risk is spread across a large pool.
Why It Matters
Company group health insurance is valuable but has critical limitations: it typically ends when you leave the job, may have lower sum insured (Rs 3-5 lakh), and may not cover parents. Use group insurance as a supplement, not a substitute for your personal health insurance policy.