What type of insurance is typically issued as group life insurance?

Group life insurance is most commonly issued as level term insurance due to its characteristics and the financial needs it addresses. Level term insurance provides coverage for a specific period, during which the premium remains constant. This aligns well with the nature of group policies, which are often offered by employers or organizations to provide a defined benefit during the term of employment or membership.

In group life insurance, the coverage amount is usually based on a multiple of the employee's salary or a flat amount. The level term aspect is beneficial as it allows members to receive a significant amount of coverage for a relatively low cost, making it an attractive benefit for both employers and employees. This is particularly important in group settings where affordability and ease of administration are priorities.

Other types of insurance, such as whole life or universal life, tend to have higher complexities and costs, making them less suitable for group policies. Modified whole life insurance also carries different characteristics that typically do not align with the standard operation of group life plans. Hence, level term insurance is the most prevalent option for group life insurance arrangements.