Resource Center: Your Go-To Guide For All Things Life Insurance

Group Life Insurance

As an employer, you know that it is important to take care of your employees. It can be challenging creating a benefits plan that provides the most for your employees while still remaining responsible fiscally.

Group life insurance plans are an important part of an employee benefit package. You can get group life insurance for a minimal cost, and your employees will appreciate the security that they get from life insurance. Group life insurance plans provide numerous benefits, such as higher morale, loyalty and security. It also helps reduce employee turnover. This means your company will reduce spending on training and hiring costs.

The low group rates also allow you to provide essential life insurance protection with premiums that are tax deductible.

Employees must look at several carriers in order to find a good match for employees and the employer.

Employee Group Life Insurance

Below is an outline of a typical group life insurance plan. For the most part, companies have similar group life insurance plans, and they all share the following attributes:

  • Coverage amounts are guaranteed, based on a set amount or salary.
  • Medical examination and health questions are not required for basic coverage.
  • If you want to get more than basic coverage, then a doctor’s examination and health questionnaire are typically required.
  • Rates will not be set per person, rather by employee groups. Larger groups of employees will get lower rates.
  • The paperwork for group insurance is minimal, unless individual coverage.
  • The fees are paid via payroll deduction or electronic transfer.
  • If an employee leaves the company, then an individual policy could be converted from a group policy.

Group life insurance policies typically offer permanent and term life coverage. The employee normally gets basic coverage for free in his or her benefits package. Employees can upgrade their coverage at their own expense. Employees may want to update their coverage if there is a change in family status, such as birth, divorce, marriage or adoption. If an employee wants to update his or her coverage, then he or she may have to get an examination or fill out a health questionnaire.

Employer Group Life Insurance

One of the primary benefits that come with offering group life insurance to your employees is that the cost is minimal to you. Although you can purchase term life or permanent life insurance, many companies prefer a term life policy that lasts for as long as the employees are working for the company.

The Cost Of Group Life Insurance

No medical examinations are required for basic coverage. Only sex, salaries and age are taken into consideration. Premium is calculated based on the average obtained from the risk factors, number of employees in the group, etc. You’ll need to speak to a licensed life insurance agent to get an accurate quote for your company. Fill out our simple online form now to compare quotes from the nation’s leading group life insurance providers.

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