What is the main purpose of group health insurance policies?

The primary aim of group health insurance policies is to provide benefits for a specific group of individuals, such as employees of a company, members of an organization, or residents of a community. This type of insurance pools the risks and resources of the group, allowing for more affordable coverage and potentially broader benefits than individuals might obtain on their own. Because the premiums are typically lower and based on the overall health of the group rather than individual health histories, these policies facilitate access to essential healthcare services for all members of the group.

The group format also encourages collective bargaining for policy terms and benefits, allowing members to receive support tailored to the needs of their community or organization. This structure contrasts with options that focus on individual circumstances, such as travel expenses, short-term health needs, or guarantees of lifetime coverage, which do not reflect the collaborative and collective nature of group insurance.