A business will typically use which type of life insurance to cover their employees?

A business typically uses a group policy to cover their employees because this type of insurance is designed to provide coverage to multiple individuals under a single master policy. Group policies are often more cost-effective than individual policies, as they spread the risk over a larger number of participants. This type of insurance usually requires less medical underwriting, making it easier for employees to obtain coverage.

Moreover, group policies often provide basic life insurance benefits without requiring individual health assessments, which can be particularly advantageous for companies when offering employee benefits. By using a group policy, businesses can also enhance employee morale and retention, since employees feel valued when offered life insurance as part of their benefits package.

Other types of policies, such as adjustable life, whole life, and endowment policies, are generally more suited for individual coverage and do not provide the same scalability or cost-effectiveness for businesses looking to insure a larger number of employees.