What is the characteristic of group life policies when it comes to the required number of participants?

Group life insurance policies are designed to cover a collective group of individuals, typically associated by a common factor such as an employer-employee relationship, membership in an organization, or similar connections. One of the defining characteristics of group life insurance is the flexibility in the size of the group it covers.

While some insurance plans may have recommended minimums for administrative convenience, group life insurance can indeed be issued even for relatively small groups, especially when the group can demonstrate a bona fide relationship among members. This aspect allows smaller organizations, such as small businesses or clubs, to offer life insurance benefits, which makes group life a flexible and accessible option for varied group sizes.

The other considerations around federal standards for participation, agent discretion, or the requirement of a significant number of participants do not generally apply in the same way as they would with other types of insurance. In group life policies, the focus is more on the relationship of the group rather than strictly on participant numbers, provided that the group is formed for a legitimate purpose.