What is a defining factor of a group policy relating to the individuals covered?

A defining characteristic of a group life insurance policy is that all eligible members of the group must be included. This principle is fundamental to the nature of group insurance, which is designed to provide coverage to a broad audience rather than to individuals on a selective basis. By ensuring that all eligible members are part of the policy, the insurer can spread the risk across a larger pool of individuals. This results in lower premiums and facilitates universal access to coverage, making it a more efficient and beneficial option for both the insurer and the insured.

The requirement for inclusivity helps to foster a sense of community within the coverage group, as all individuals, regardless of their health status or other personal factors, have the opportunity to participate. This starkly contrasts with other options where limitations or exclusions are imposed, like requiring marriage for eligibility or allowing individual selection of coverage limits. The collective nature of the group policy is what ultimately distinguishes it from individual insurance contracts.