Business Life Insurance

Finding the Best Group Life Insurance

(An easy way to score major karma points)

Greg Lewerer | July 9, 2018
demonstrating a work plan to colleagues

As an employer, one of the most unselfish things you can do (aside from giving an organ to an employee) is to offer them group life insurance. This added benefit will help your employees leave their loved ones enough money (hopefully) to close out their tab.

Our independent agents are ready to help you help them set up a solid just-in-case plan. They’ll walk you through a handpicked selection of group life insurance options that your employees (and their beneficiaries) will greatly appreciate.

What Is Group Life Insurance?

It’s a single contract for life insurance that covers an entire group of people. Typically, an employer will negotiate the policy for their employees. If any employees are dealt the weighty blow of death, their beneficiaries are compensated with whatever sum of money was decided upon in the contract. 

The Benefits of Group Life Insurance

While it is not mandatory for employers to offer group life insurance, there are major benefits besides the feeling of pure moral satisfaction. Offering group life as an employee benefit helps companies stay competitive in the job market, while also allowing some employers to deduct the costs from their federal taxes.

The bottom line: People with chronic health issues (and even senior citizens) can get jobs. They have a hard time getting life insurance on their own. If an employer is offering it, group life will cover an employee even if they’re at death’s door.

group life insurance benefits graphic

What Does Group Life Insurance Cover?

Coverage will be decided between the employer and insurance company. As an employer, you have a few options when choosing the type and amount of coverage. Typically, employers offer a basic group term life benefit (as opposed to the other, costlier group universal life).

  • Term life insurance plan: covers employees for a certain term, and the amount of coverage is a set amount for each employee or equal to an employee’s annual salary.
  • Supplemental coverage (think accidental death and dismemberment) is another option for employers to offer. This might be a good idea for employees worried about the amount of debt they’re leaving behind.

How Much Does Group Life Cost?

How much it costs depends on a few things, mainly the type of coverage and who it covers (and how big your heart is). If offering group term life, some employers choose to pay for all of it, leaving it free for employees to take advantage of. This could start as low as a couple dollars a month (per employee) for basic coverage. 

Employers can also choose a shared cost between them and their employees, with each paying a portion. Any supplemental coverage over the basic is typically paid for by the employee. 

The Benefits of an Independent Agent

Independent agents do all of the legwork. They wade through an assortment of flavors to find the one that best suits the needs of you and your employees. Plus, they’ll let you know exactly what you’re getting (and they use human terms so there’s no getting lost in translation). 

Comparing Group Life Insurance Quotes

Our stellar agents will review your needs and help you evaluate the group life coverage that makes the most sense. They’ll also compare policies and quotes from multiple insurance companies to make sure you have the right protection in place. So you’ll have that going for you. Article | Reviewed by Paul Martin

Now, who's ready to get their insurance problems solved?