Who is typically the policyholder in a group insurance plan?

In a group insurance plan, the policyholder is typically the employer or organization. This structure is set up so that the employer purchases the insurance coverage for a group of individuals, such as employees, rather than having each employee purchase their own individual policy.

The organization assumes the role of the policyholder, which allows them to offer benefits as part of a larger employee benefits package. This often leads to lower premiums as the risk is spread over a larger group, which not only benefits the employees with reduced costs but also allows the employer to provide a valuable perk that can help in attracting and retaining talent.

Individuals within the group, such as employees, usually receive a certificate of insurance that outlines their personal coverage under the group's policy but do not have the contractual obligations or ownership that the policyholder does. Therefore, the employer or organization is the central figure in the arrangement of a group insurance policy, making them the policyholder.