Group life insurance policies are typically written as which type of insurance?

Group life insurance policies are most commonly written as annually renewable term insurance. This type of policy is designed to provide life insurance coverage for a group of individuals, such as employees of a company, for a specified period, usually one year. At the end of each term, the coverage can be renewed without the need for individual underwriting, making it an efficient solution for providing life insurance to large groups.

The annually renewable feature allows the policy to be easily adapted as the group changes, whether due to new employees joining or existing employees leaving. This aligns well with the nature of group plans, where the risk is spread across many people, simplifying administrative processes and maintaining affordability for participants.

Options such as whole life insurance, universal life insurance, or other longer-term policies are less commonly utilized in group settings because they often involve higher premiums, more complex underwriting processes, and longer commitment periods, which do not suit the flexibility needs of most group scenarios. Thus, annually renewable term insurance emerges as the most practical and widely used choice for group life insurance policies.