PSI Life Exam Practice Test 2025 - Free Life Insurance Exam Questions and Study Guide

Group term life insurance typically covers members of a group, most commonly offered through employers. This type of insurance provides a death benefit to the beneficiaries of employees who are part of a specified group, eliminating the need for individual medical underwriting in many cases.

The advantages of group term life insurance include affordability and ease of access, as it is generally provided at lower rates compared to individual policies and often requires no medical examination for eligibility. This makes it an appealing benefit for employers to offer, promoting employee welfare and attracting talent.

In contrast, the other options focus on more restricted or individual situations rather than the collective nature of group term life insurance. For example, while specific health conditions or high net-worth individuals might have tailored life insurance needs, these do not provide the broad coverage associated with group term policies. Similarly, coverage is typically not limited just to family members of the policyholder but extends to all eligible members of the group defined by the employer or issuing organization.