Life Insurance✓ Verified · outline & fact-checked · Sep 2026Difficulty 1/5
Group life insurance eligibility commonly requires that the employee be:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
A standard group life eligibility condition is that the employee must be actively at work on the effective date of coverage. This requirement ensures that the plan does not pick up individuals who are already unable to work, which would create adverse selection. Typically the employee must also be a full-time employee and complete any enrollment or waiting period the plan requires. Age 21, five years of service, and shareholder status are not typical eligibility conditions for group life coverage.
Why the other options are wrong
- B) There is no upper-age or under-21 requirement for enrollment in group life plans; coverage is available to employees of working age.
- C) Group life normally requires only full-time employment and may have a short probationary period, not five years of service.
- D) Employment, not stock ownership, establishes eligibility; shareholders have no special enrollment right.
Memory hook
Group life starts when you show up to work.