Life insurance has become an ultimate need of every individual and groups to avert life risks which are uncertain and the risks that definitely will occur but the time and where it will take place is what is unknown to man.

As individual persons look for personal life insurances, groups also look for insurance policies for their members.

Group life insurances is a contract issued to cover a group of people who have one common interest besides their needs for life insurance. The contract is issued as a Master policy which contains names of all its members. The members write down changes from time to time due to

1.      Entry of new members into the group and

2.      Exit of members who die, resign from the group, those who retire, or any other cause which will occasion their exit.

The life insurance company or the insurer caries the risk of people who die untimely or premature death or disability who suffers critical illnesses or accident on the member of the group.

Group life insurance have in mind the financial liability the group or employers have to pay as death in service benefits to survivors of their employees who suffers such life risks. The financial safety needs of those who depend on their transaction with third parties like bank, suppliers or others.

Group disability income insurance sees the income requirements of its members during the period of their disability which also take care of group health.


1.      One policy is issued to the group which is called the Master Policy and its normally handled to the trustee of the group.

2.      As long as the contract is renewed, the agreement or the contract remain in force without considering change in the membership of the group.

3.      In this contract though members, have beneficial interest they are not part to the contract. It is between the group and the insurance company since the policy is issued to the trustees of the members.

4.      In this contract the group has the obligation to pay premiums to the insurance company whether the premium is paid by both the group and the members or the group alone.

5.      Beneficiaries are paid the benefit from the policy by the policyholders or the trustees of the group who hold that in trust though the benefit are paid by the insurance company.

6.      With individual policies underwriting is very strict but with the group contract its easy.


1.      The group qualify to have insurance if they have a common purpose other than for insurance. In this vein the group must exist for common goal for example professional association of insurance officers coming together for keeping fit. Insurance should be a secondary matter.

2.      The group should be large to reduce the number of people who wouldn’t have qualify for life insurance policy if they applied alone or as individuals. If the members are few uninsurable lives will have adverse effect on the insurance company.

3.      Individuals should not be able to influence the size of their benefits. It should be on common basis so as to avoid anti-selection or adverse selection.

4.      Older members should be replaced by younger ones as they go on retirement of dies.

5.      Member enrollment should be compulsory if not, minimum percentage of those who are eligible must enroll as members.

6.      Member who refuses to join at the initial stage of the contract but in good health must provide evidence that they are insurable when they want to join later to avoid adverse selection against the insurance office.

Group Life Insurance policies are of types and purposes which we have to delve into. 

Brain work:

Baba Falade

Ebenezer Odartey Lamptey

I was born in the Eastern part of Ghana called Koforidua. I'm 43 years old and married to a beautiful wife (Eunice). I was brought up by my mother alone when our family was broke down by my Mom's best friend who turned out to be my Daddy's second wife. Life was difficult where my mum had to do other menial jobs to feed me after she was fired from work for taking me with her to work. What my mum knew was to educate me to get good grades and get the best paying job which she thought was becoming a medical doctor. finally, I ended up in the insurance industry and working for almost a decade. I enjoyed one moment in life when my mother visited me in the western part of the country while on leave. we had the best time when I picked her on my back to show how I wished we are together and my kids pulling her clothes to come down for their turn, ( Grand Maaa, Grand Maaa, it's my turn to be picked by Daddy); Unfortunately, she had a mild paralysis when her Blood Pressure raised and there was no one with her that night when she left my place to her lonely apartment. She died after six months while bedridden. I felt I have enough time for my family afterward. It never happened since I was enslaved to work from 9 to 5. I was not able to move from my comfort zone for my passion which will give me time for my family. Today, I have found what makes me happier and have more time for the people that I care for. My family time together for a silly walk and talk, questions my kids ask which take them to where they want to be in the next 100 years today. They are adults in their own world and their mind is like a lump of wet clay that whatever I print on it will stack which is the best time to give them the best they need from their mentor. I now know my wife also has a passion too.

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