Final answer:
Group life insurance offers lower rates than individual insurance and includes all employees regardless of health, usually provided by an employer. It pools the risk across a group to offer better rates and coverage without medical exams. The Affordable Care Act has also influenced the insurance marketplace by mandating coverage and preventing denials for preexisting conditions.
Step-by-step explanation:
The type of life insurance that provides lower rates than individual insurance, and includes all employees, regardless of health or physical condition, is called group life insurance. Group life insurance is often provided by an employer, and it represents a form of employment-based insurance. This type of insurance policy benefits employers and employees by offering coverage without a medical examination, and rates are typically lower because the risk is spread across a group of covered individuals.
Employment-based insurance can cover just the employee or the employee and their family. This kind of insurance setup can also address the problem of adverse selection, as it mixes individuals with varying health risks. Direct-purchase insurance, on the other hand, is when coverage is bought directly from a private company by an individual.
The Affordable Care Act introduced measures to further manage the adverse selection problem by allowing health insurance to be sold through state government-sponsored health exchange markets, and by mandating that all Americans buy health insurance from some provider, preventing providers from denying individuals based on preexisting conditions.