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 Group insurance is cheaper than individual insurance because the probability of large groups of people being rewarded more than they pay in premiums is lower than that of individuals.

 Group insurance was frequently the only option that allowed for coverage on preexisting conditions (conditions people developed before receiving insurance); however, under the Patient Protection and Affordable Care Act, insurance companies can no longer deny coverage to people.

Health maintenance organizations (HMOs) are a popular, and often cheaper, insurance option for both corporations and individuals because they require everyone insured to go through a general physician, who acts as a kind of gatekeeper by determining whether a referral to a specialist is required.

Life insurance companies work similarly to other types of insurance companies, except that the only time they pay benefits is when you die. Corporations sometimes take life insurance policies on critical employees who have specialized skills or knowledge that can’t be easily replaced without significant financial losses. Many corporations also offer group life insurance which, like health insurance, is cheaper than individual insurance. Life insurance comes in two basic flavors: whole and term. Each one has a wealth of variations and additional options. The types have many differences, but the primary distinction is that term life insurance is paid for a set period and is only valid as long as it is being paid, while whole life insurance is considered permanent and will build value over time.