<P> c . Such covers are typically available at a discount to the respective individual rates, as administration and expected claims costs are lower . </P> <P> Insurable Groups can broadly be classified as mainly two types - "employer - employee" groups where all members work for the employer proposing to cover them or "affinity" groups, whose members have a commonality other than employment - say deposit holders of a bank . </P> <P> The Master Policy Holder of a Group Life Insurance Plan in the case of an "Employer Employee Group" is basically the Employer and for other groups would be the entity that has an insurable interest in the lives of its members . So in the case of a bank it could be said to have an insurable interest in the lives of its members who hold a deposit or have taken a loan . The Master Policy Holder also ensures each member gets their certificate of coverage stating the details of the premium paid, cover available, term of the cover and the claims process </P> <P> A feature which is sometimes common in group insurance is that the premium cost on an individual basis is not individually risk - based . Instead it is the same amount for all the insured persons in the group . So, for example, in the United States and elsewhere, often all employees of an employer receiving health or life insurance coverage pay the same premium amount for the same coverage regardless of their age or other factors, even though the total group premium will be calculated by reference to the actual (or estimated) age distribution etc. of the group . In contrast, under private individual health or life insurance coverage in the U.S. and elsewhere, different insured persons will pay different premium amounts for the same coverage based on their age, location, pre-existing conditions, etc . </P>

A group health insurance policy is a contract between an