Group life insurance is a policy offered to a group of people, such as employees of a company or members of an organization. It provides coverage for all members under a single policy, often at a lower cost due to the shared risk among the group. This type of insurance typically offers basic coverage with options for additional benefits, and it is often included as part of an employee benefits package.
Individual life insurance, on the other hand, is a policy purchased by an individual to provide financial protection for their beneficiaries in the event of their death. It is tailored to the individual's needs and preferences, allowing for customizable coverage amounts, policy terms, and additional riders or benefits. Individual life insurance can be either term (covering a specific period) or permanent (providing lifelong coverage and often including a savings component).