Group Life Insurance, explained.
Employer-paid or voluntary life coverage — pennies per employee, priceless when it’s needed.
Group Life Insurance
Group life is a term-life benefit offered through the employer. Basic group life (commonly $25,000–$50,000, or 1x salary) is employer-paid and issued with no medical exams up to the guaranteed-issue limit — every eligible employee is covered automatically. Voluntary supplemental life lets employees buy more for themselves, a spouse, or children at group rates through payroll deduction. AD&D (accidental death & dismemberment) is usually paired for pennies more.
Group life is the least expensive line in the entire benefits package — often $3–$8 per employee per month — and it delivers a benefit that means everything to a family at the worst possible moment. Because guaranteed-issue coverage requires no health questions, it may be the only life insurance an employee with health conditions can get. Employer-paid premiums for the first $50,000 of coverage are also tax-free to the employee.
Is this for you?
Inside a Group Life policy.
When this coverage pays off.
$50K for every employee
A 20-person company adds $50,000 of employer-paid life + AD&D for roughly the cost of a coffee per employee per week.
Voluntary buy-up
Employees add $100K–$500K of supplemental coverage for themselves and spouses through payroll deduction — no employer cost.
Coverage no one else would write
An employee with a serious health history gets guaranteed-issue coverage through the group — the only life insurance available to him.
Plain-language answers.
No — below the guaranteed-issue amount there are no health questions at all. Above it, simplified underwriting (a short questionnaire) may apply.
Employer-paid coverage up to $50,000 is tax-free to the employee. Above $50K, a small amount of imputed income applies. The death benefit itself is generally income-tax-free to beneficiaries.
Most policies include conversion (to an individual policy) or portability options so coverage can continue after employment ends.
It’s a foundation, not a full plan. Most families need 5–10x income — we help employees layer voluntary or individual term on top where needed.
Ready for a Group Life quote?
Fill the short intake form and we’ll shop across multiple carriers, or call us and we’ll get you a quote on the phone.