In group life insurance, what role does the employer typically play?

In group life insurance, the employer typically acts as the policyowner. This means that the employer purchases a group policy for its employees, which provides coverage to a group rather than individual policies for each insured. By being the policyowner, the employer is responsible for making decisions about the coverage, such as the amount of insurance provided and the premium payment.

The concept of the employer being the policyowner is significant because it streamlines the administrative process of providing life insurance benefits to employees. The employer can enroll employees in the plan, manage premium payments, and handle any updates regarding coverage. It also means that the employee does not have to go through the individual underwriting process, which can save time and reduce costs.

Understanding this role of the employer in group life insurance is key for grasping how group insurance works, including aspects like the features of coverage and the benefits provided to employees as part of their overall compensation package.