Group life insurance premium rates are very low as compared to individual insurance premium rates as the insurer's risk is spread out amongst a large number of people. Suppose the policy purchaser, i.e., the owner or manager pays the group life insurance policy premium and offers. It as a service benefit to the members. In that case, there is no cost associated with it for the group members.
The group life insurance premium is calculated based on factors such as the total expected claim cost, expenses, commissions, taxes, group size, required risk and profit margin, and applicable discounts.