What does group insurance typically cover?

Group insurance is designed to provide coverage to a collective group, typically including employees and, in many cases, their dependents. This structure allows for the pooling of risk among a larger group, which often leads to lower premium costs per individual compared to individual insurance policies. The inclusion of dependents under a single policy is a significant characteristic of group insurance, making it an attractive option for employers who want to provide comprehensive benefits to their workforce.

When assessing the alternatives, the second choice, which suggests coverage is limited to only the employee, does not capture the essence of group insurance plans, as they routinely extend coverage to dependents. The third option, stating that only high-cost procedures are covered, misrepresents the broader scope of coverage generally found in group policies, which can include a range of services from preventive care to hospitalization. Lastly, the option that limits coverage to the elderly is overly restrictive and inaccurate, as group insurance is not age-specific and often covers a broad demographic, including younger employees and their families. Therefore, the comprehensive nature of group insurance that includes both individuals and their dependents distinguishes it as the correct response.