Employers have no obligation under Michigan law to offer life insurance to their employees. However, if group life insurance is among the benefits offered to workers, certain minimum requirements must be satisfied (MI Comp. Laws Sec. 500.4404, Sec. 500.4426, Sec. 500.4438).
Group characteristics. The policy must insure at least two employees, with or without a medical examination. The group must include all employees belonging to the class defined as eligible for coverage determined by conditions related to employment.
Beneficiary. The employee may name anyone as beneficiary.
Employer/employee contributions. Employers may, but are not required to, make a contribution toward the cost of group insurance.
Dependents. The policy may be extended to insure the eligible dependents of each insured employee or member who so elects.
Conversion. Employees, as well as their spouses and minor children, are guaranteed the right to convert group coverage to an individual policy in the event that the group member's employment is terminated or the member ceases for any other reason to be a part of the class eligible for coverage.