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3.1.3 Group Insurance

Group life insurance is as its name implies - coverage for specific "groups." Typical covered groups include membership organizations, associations, unions, employee plans, and credit life protection. One basic contract (called the master policy) covers all individuals in a group and therefore does not allow for discrimination in any sense of the word. Covered individuals receive a certificate of coverage.

Group life insurance will be addressed in detail in Lesson 6, Group Life Insurance.

1
Section 3.1 Review

Identify the three basic categories of coverage upon which the life insurance world revolves.

life insurance is the most common. life insurance provides smaller face values. life insurance affords coverage for specific groups.


Word bank: Group, Industrial, Ordinary

Ordinary life insurance is the most common. Industrial life insurance provides smaller face values. Group life insurance affords coverage for specific groups.

Lesson 3.1Check your answer

2

Ordinary insurance in the permanent life insurance category accumulates cash value.

a) True
b) False
CORRECTTRY AGAIN (Lesson 3.1.1)
Check your answer

3

A main reason for purchasing industrial life insurance is to:

a) cover funeral expenses.
b) provide for a college education.
c) pay off loans.
CORRECTTRY AGAIN (Lesson 3.1.2)
Check your answer