What is a primary feature of group insurance?

The primary feature of group insurance is that it typically comes with low cost and a master contract. This is because group insurance operates on the principle of risk pooling, where a large number of individuals are covered under a single policy. By pooling risks in this way, insurers are able to offer lower premiums compared to individual policies, making coverage more affordable for members of the group, whether it is for employees of a company or members of an association.

The existence of a master contract is another key aspect of group insurance. Instead of each individual having their own policy, the group holds a single master policy, which outlines the terms of coverage for all members. This simplifies administration and helps to further reduce costs associated with underwriting and administration that would be more prevalent in individual insurance policies.

In contrast to individual plans where personal underwriting may be required and premiums can be quite high, group insurance simplifies the process, reduces costs, and provides coverage based on the collective membership rather than on individual health assessments.