What is the difference between group life and individual life?

• A. Group life is owned by the employee; individual life is owned by the insurer.
• B. Group life provides temporary coverage only; individual life provides permanent coverage.
• C. Group life is always term; individual life never converts.
• D. Group life provides coverage through an employer or association; individual life is owned by a person.

Answer: (D)

The key difference is who owns the policy and how the coverage is provided. Group life insurance is issued through an employer or a sponsoring association under a master policy; the sponsor owns the policy, and eligible employees are insured under it. Individual life insurance is a policy owned by the person who buys it—the insured—independent of their employment.

So the best answer captures that group life coverage comes through an employer or association, while individual life is owned by a person. The other statements misstate ownership or the nature of coverage (group plans aren’t universally owned by the employee, and term vs permanent or conversion rights aren’t fixed rules for all group vs. individual policies).