What type of insurance policy usually covers a group of people under one contract?

A group policy typically covers a collection of individuals under a single contract, making it distinct from individual policies, which are tailored for single persons. This type of insurance is commonly offered through employers, unions, or other organizations, allowing members to receive coverage collectively.

The advantages of group policies often include lower premiums for participants due to the pooling of risk, and the coverage may be more accessible with fewer underwriting requirements. Group policies are especially beneficial in situations where providing health insurance to individual members would be impractical or cost-prohibitive.

In contrast, individual policies cater to personal needs and are contracted individually with specific terms for each insured person. Family policies cover a household or family unit but still lack the collective nature found in group policies. Unilateral policies typically refer to contracts where only one party makes a promise, which is not the same as group coverage. Thus, the nature of group policies makes them the correct response to this question.