Group life insurance is a type of insurance coverage that provides a benefit to a group of individuals as a whole, typically offered by employers to their employees. It is often a part of employee benefits packages. Under a group life insurance policy, the risk is spread among the members of the group, making it more affordable than individual policies.
In the event of the death of a covered member, the group life insurance policy pays out a death benefit to the designated beneficiary, who is usually the individual’s family member or someone nominated by the insured. The amount of coverage may be a multiple of the employee's annual salary, a fixed amount, or a combination of both.
Group health insurance, on the other hand, is a type of health insurance plan that provides medical coverage to a group of people, typically offered by employers to their employees. It helps protect individuals from high healthcare costs by sharing the financial risk among the members of the group.
Under a group health insurance policy, employees and their dependents are provided with access to healthcare services, including doctor visits, hospital stays, prescription medications, and other medical treatments. The policy may require a portion of the costs to be paid by the employee through premiums, deductibles, or copayments.
Group health insurance plans may offer different levels of coverage, allowing employees to choose the most suitable options for their healthcare needs. These plans often have a network of healthcare professionals and facilities, offering discounted rates for services provided within the network.
