Group Life Insurance

An employer-sponsored group life insurance plan is often the only life insurance that an employee carries. The significant premiums and physical exam requirement can be a deterrent to purchasing a individual policy for many families.

Typical employer group life insurance coverage is a a year's salary but companies frequently offer a multiplier, i.e. 2 or more times annual salary with a small contribution from the employee.

Group life insurance rates are relatively low for the employer; five cents for every $1,000 worth of coverage is average. Rates are based on a number of group factors including:

  • Size
  • Company claims history
  • Occupations
  • Employee gender and average age
  • Salaries (if a salary-based plan)

Group life insurance is typically bundled with group health insurance, reducing sales and administrative costs.