What is the term for insurance that covers a group of people under a single policy?

Insurance that covers a defined group of people under a single policy is called group insurance.

Instead of each person buying a separate contract, a group—such as employees of a company, members of a professional association, or members of a society—receives coverage through a master policy. The organization that arranges the plan is often the master policyholder, while individual participants receive certificates or evidence of coverage.

Group insurance can include health, life, disability, and other forms of personal insurance. By enrolling people who share an employment or membership relationship, the insurer can spread administrative expenses and reduce concerns about adverse selection. The resulting premiums may be lower than comparable individual coverage, although prices and benefits depend on the plan and jurisdiction.

A common misunderstanding is that group insurance always continues permanently. In employer-sponsored plans, coverage commonly depends on continued employment, eligibility, and premium payments. Individual insurance is purchased directly by a person and is generally assessed around that person’s own application and policy terms. Group plans may be compulsory or voluntary, depending on how the program is structured.