Group life insurance is purchased by an entity representing multiple individuals. The individuals are listed on the policy, but the insurance company considers the group as a whole rather than individual members when making decisions about rates and eligibility. For example, if an automobile manufacturer's union would like to offer group life insurance to its members, the union would apply for a policy based on the average earnings, life expectancy and health costs of its members. Then, any member of the organization, whether he or she is above or below average in one of these categories, is eligible for the plan. Typically, the plan offers minimal coverage, and members may buy additional life insurance outside of this basic coverage. 

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