Life Insurance: What you need to know

Group term life insurance is a popular benefit because the cost is relatively low and employees typically value the coverage highly, giving employers a big “bang for the buck.” Offering group term coverage provides basic financial security for employees and their families and helps to attract and retain the best employees.
For a Limited Time receive a FREE HR Report on the "Critical HR Recordkeeping”.  This exclusive special report covers hiring records, employment relationships, termination records, litigation issues, electronic information issues, tips for better recordkeeping, and a list of legal requirements.  Download Now
Because group term life insurance is inexpensive and highly valued by employees, employers frequently pick up the full cost. In addition, the cost of the first $50,000 of group term insurance coverage may be provided tax-free to the employee.
The most common practice among employers is to provide employer-paid group term life insurance in an amount equal to a percentage of each employee's annual pay. There are numerous variations on this basic design, including:
• Higher benefits, such as 11/2, 2, or 3 times annual salary
• Flat-sum benefits in various multiples, such as $10,000, $25,000, $50,000, etc.
• Requiring employees to pay a portion of the premiums
• Allowing employees to purchase supplemental coverage at group rates
• Employer-paid, employee-paid, or shared payments for spouse and dependent coverage
• Additional group universal life insurance coverage giving employees additional portable insurance coverage and the ability to accumulate cash
Term insurance is the least expensive form of life insurance. A term policy covers only the “term”--usually a year--in which premiums have been paid, and it has no cash value, paying only in the event of the death of the insured. A term policy at group rates is less expensive per person than individual term policies would be for the same group of people, and a term policy is considerably less expensive than a “whole” ...

>> Read more about Life Insurance

More on this topic:

State Requirements

Alabama | Alaska | Arizona | Arkansas | California | Colorado | Connecticut | Delaware | District of Columbia | Florida | Georgia | Hawaii | Idaho | Illinois | Indiana | Iowa | Kansas | Kentucky | Louisiana | Maine | Maryland | Massachusetts | Michigan | Minnesota | Mississippi | Missouri | Montana | Nebraska | Nevada | New Hampshire | New Jersey | New Mexico | New York | North Carolina | North Dakota | Ohio | Oklahoma | Oregon | Pennsylvania | Rhode Island | South Carolina | South Dakota | Tennessee | Texas | Utah | Vermont | Virginia | Washington | West Virginia | Wisconsin | Wyoming |

Life Insurance Resources

There are currently no resources for this topic/state.

Life Insurance Products

Healthcare Reform Webinar Recording
BLR Webinar: "Healthcare Reform: What the New Legislation Means for Employers; Get Prepared Now""
Safety Culture Webinar Recording
BLR Webinar: "Safety Culture: How To Assess – and Improve – Your Organization’s Safety Policies and Practices""
Global Rewards Webinar Recording
BLR Webinar: "Global Rewards: Practical Approaches to Successful Multinational Rewards Strategies""
Encyclopedia of Employee Handbooks
This practical tool gives you everything you need to create a customized employee handbook for your company. Includes tips on how to select your format, style and topics, how to prepare your handbook, and samples of employee handbooks and HR policies being used in actual companies. "
Benchmark Benefit Survey: Benefits for Part-Time Employees
In this economy more companies are turning to part-time employees. What sort of benefit package do you offer your part timers? Know what others are doing."
Free Special Reports
Get Your FREE HR Management Special Report. Download Any One Of These FREE Special Reports, Instantly!
Featured Special Report
Claim Your Free Copy of Critical HR Recordkeeping

Record retention is complex and time consuming. However, in addition to complying with various federal and state laws, keeping good, well-organized records can be very helpful in documenting and supporting an organization’s employment actions.
Download Now!

This special report will discuss how you can ensure your records are in good order, and establish a record-retention policy.

Topics covered:
1. Hiring Records
2. Employment Relationships
3. Termination Records
4. Litigation Issues
5. Electronic Information Issues
6. Tips for Better Recordkeeping
7. A List of Legal Requirements

Make sure you have the information you need to know to keep your records in order.