Group life insurance policies are typically written as what type of policy?

Group life insurance policies are typically written as an annually renewable term policy. This type of policy is designed to provide coverage for a specific term, which can be renewed each year without requiring additional medical underwriting for the participants as long as they remain members of the group. The primary purpose of group life insurance is to offer a straightforward and cost-effective way for employers and organizations to provide life insurance benefits to their employees or members.

Because these policies usually cover large numbers of insured individuals under a single master contract, offering coverage based on a term structure makes it easier to manage and lower the costs compared to permanent policies. This arrangement allows employees to enjoy life insurance protection without needing individual policies, which are often more expensive and require more extensive underwriting processes.

In contrast, whole life and universal life policies are designed to provide permanent coverage, lasting until the insured's death as long as premiums are paid, which is not the typical structure for group policies. Term life insurance, while it shares some similarities in providing temporary protection, is usually associated with individual contracts rather than group coverage. Thus, annually renewable term is the most suitable option for group life insurance.