Which group can purchase group insurance for its members?

An organized alumni or professional group with specific criteria is eligible to purchase group insurance for its members because such groups often have a defined membership and specific criteria for joining. This structure allows them to meet the requirements set by insurance providers to qualify for group insurance. Group insurance can be more affordable and beneficial for members because risks are pooled, leading to lower premiums and better coverage options.

Unlike informal social groups, which may lack the organization necessary to constitute a group insurance plan, or local community charities, which might not meet the criteria established by insurance companies, organized groups typically have established criteria for membership, governance, and activities. This formal organization enables them to negotiate insurance benefits collectively. Government entities may also secure insurance, but it is more about organizational capacity rather than being an eligible group in the context of traditional group insurance for non-governmental members.