ARE there any benefits in buying life insurance, critical illness or permanent health insurance as part of a group? According to Irish Life, which is one of the biggest sellers of group plans, hundreds of trade unions, sporting clubs, professional representative bodies and voluntary agencies could be saving their members hundreds of pounds by arranging group life insurance schemes.

Group plans are already very popular for general insurances, such as motor and home and contents insurance. But, says Irish Life, term assurance and other life policies can be very competitive, mainly because administration charges are significantly reduced and because, in setting the premium, the average age of the groups is used.

This scheme mirrors the community rating principle of VHI and means that age is less important in setting individual premiums.

The company provides the following examples to show just how much more competitive a group life cover scheme compared with the cost to an individual buying the same policy. Based on an average age profile of 45, the table shows how the competitive benefit of the group rate increases substantially the older you are. We understand that Ins Life is aiming its scheme at groups of at least 50.