Which type of life insurance is typically used by a business to cover its employees?

• A. Group Policy
• B. Term Policy
• C. Whole Life Policy
• D. Universal Life Policy

Answer: (A)

Group life insurance is designed for a sponsoring organization to provide life coverage to a group, such as employees. The employer is the policy owner under a master policy, and individual certificates are issued to each employee. This setup makes coverage affordable and easy to administer because underwriting is based on the group as a whole, and premiums are often paid by the employer or shared with employees. The coverage is typically term and tied to employment status, rather than being a permanent personal policy. These features—one master policy, employee certificates, cost efficiency, and use as an employee benefit—are why this type is the standard choice for a business to cover its employees.