What is typically included in a group life insurance policy?

A group life insurance policy is designed to provide coverage for a defined group of individuals, commonly employees of a company or members of an organization. One of the key features of these policies is that they often include an aggregate coverage amount for the entire group. This means that the insurance will cover the total risk associated with all members included in the group policy, which is more efficient than underwriting each individual's risks separately.

The benefits of this structure include generally lower premiums and simplified administration for the employer or group sponsor, as the policy is issued as a whole rather than individual policies being created. The aggregate coverage is set based on factors like the size of the group and the overall risk profile, making it easier to manage from an underwriting perspective.

In contrast to option C, while individual members might have specific coverage amounts that may vary by individual, that variability is often not the primary characteristic of group policies as a whole is reflected in the aggregate coverage. This makes aggregate coverage a distinctive feature of group life insurance policies, establishing the environment in which this type of insurance operates.