- The basic risk that is covered is death.
- Underwriting procedure is generally considered to be lenient compared to Individual life business.
- The members of the group life scheme must have been in existence for another common purpose aside that of group life cover.
- Group Life insurance is arranged on annually renewable contract.
- Premium is usually borne by the employer who has taken cover for his employees.
- Risk of Death is not uniformly distributed over the years.
- One death claim might wipe off the entire premium charged in a year.
- The Mortality experience may vary from year to year.
