What type of insurance is most frequently used in group life plans?

The most frequently used type of insurance in group life plans is typically Annual Renewable Term. This form of life insurance is designed to provide coverage for a specific term, often one year, with the option to renew at the end of each term without requiring additional medical underwriting.

The primary reason for its popularity in group plans is its cost-effectiveness and suitability for covering large groups of individuals, such as employees in a company. Organizations often prefer this type due to lower initial premiums and the simplicity of issuing coverage to a group, which benefits employees without requiring them to qualify for individual policies.

Additionally, term insurance aligns well with the needs of many individuals in a group setting, as it provides significant coverage at a lower price compared to whole or universal life insurance options. This allows employers to offer valuable benefits to employees without incurring excessive costs.

The other types of insurance mentioned, such as whole life and universal life, generally involve higher premiums and more complexity in terms of benefits and cash value accumulation, making them less practical for group insurance purposes where affordability and straightforward benefits are priorities.