Group Life Insurance

A certificate of insurance summarizing the coverage and the employee's rights. — Group life insurance is structured around a single master contract issued to the group policyholder, such as an employer, union, or association. Each covered employee is not a party to the master contract but receives a certificate of insurance that summarizes the coverage, including the amount of insurance, the beneficiary designation, and important rights such as conversion. The certificate makes the employee's protection understandable and portable when employment changes, while the master contract governs the employer's relationship with the insurer.

National insurance concept

Master policyholder, usually the employer — In group life insurance, the insurer issues one master contract to the master policyholder, typically the employer or association, and each covered employee receives a certificate of coverage summarizing the benefits. The employer holds the contract, pays premiums, and administers the plan; the certificate is evidence of coverage but is not the insurance contract itself. This two-tier structure, a master policy plus certificates, is the defining feature that distinguishes group insurance from individual policies. Understanding the master-contract structure is essential because individual employees have rights only through the employer's contract, and disputes are resolved against the terms of the master policy rather than the certificate.

National insurance concept