Group Life

Group Life Insurance is a key element in any employee benefits package:

Studies show that many employees no longer own individual life insurance and instead rely on the coverage's available to them through their employer.
Employer-paid group life and accidental death & dismemberment (AD&D), coupled with supplemental term or permanent life insurance, provides a foundation of planning for your employees, at affordable rates with ease of underwriting.

An employer is allowed to provide up to $50,000 in group term life insurance to employees, tax-free. Offering life insurance face amounts of two or three times salary is also common; the drawback is that the premiums paid by the employer must be included in the employees taxable wages.

Many employers offer a supplemental life plan, either with term insurance or permanent coverage.
Life insurance premiums are not pre-taxable under a Section 125 Plan.

(Note: Some health carriers now require the purchase of life insurance with a medical plan. While this is a good deal for the carrier, in most respects it isn't a good deal for the employer. Better value is achieved by developing a stand-alone life program with both group and voluntary supplemental elements. All things considered, choosing a health plan that does not require life insurance is often a better value.)

Group term and voluntary life insurance is made available on a simplified issue basis, sometimes with guaranteed issue limits. This is especially attractive to employees who might otherwise be uninsurable, depending on group size. double indemnity, AD&D, common carrier provisions, and travel accident coverage can also be arranged on these plans.

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