What are the benefits of group life insurance policies?

There can be an individual policy. Any individual can buy a life insurance policy or a health insurance policy and he pays premium for those policies. However, as a group, this group can be a group of employees or any other group can be formed. If people buy insurance through a group life insurance policy or group health insurance policy, one benefits because insurance company issues a single master policy and all the members are covered in that single policy.

First advantage is premium. In such case premium is comparatively less than the person pays individually. If you buy policy for 100 people under group insurance policy it will be less than the premium paid by 100 people individually.

Second benefit when you talk about health insurance, you buy individually there are many exclusions. For example, pre existing disease will not get covered in first 36 months or 42 months or there are some other exclusions like in the first year certain disease will not get covered in the policy. However, when you buy a health insurance policy under group insurance these exclusions can be waived off. So, you may get covered right from day one. Your existing disease can also get covered right from day one. Also, maybe when you go for an individual policy you have to undergo pre insurance medical test and based on that result you may not be able to get a policy from the insurance company. However, under group insurance policy most of the time there is no pre insurance medical checkup. So, all the employees in the group or any other group formed all the individuals will get insurance irrespective of their health. So, that is advantage, the people who cannot get policy or who are not eligible to get insurance policy individually under group insurance cover they are also covered.