Employers have no obligation under Wisconsin 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 (WI Stat. Sec. 632.56, Sec. 632.57).
Group characteristics. There is no minimum on the number of people needed to form a group. Group members need not necessarily all be employed by the same organization, but the group must have been formed for some reason other than merely to obtain life insurance.
Employer/employee contributions. Employers are not required to make any contribution toward the cost of group insurance.
Conversion. Employees are guaranteed the right to convert group coverage to an individual policy in the event that the worker's employment is terminated or the worker ceases for any other reason to be a member of the class eligible for coverage. If the group policy terminates or is amended so as to terminate the insurance of any class of employees, individuals who have been covered for at least 5 years must be allowed to convert to an individual policy. The group policy may provide that the maximum amount of insurance available if the policy terminates is at least $2,000 without a conversion charge and/or an additional amount of at least $3,000 if the insuree pays the insurer's usual conversion charge on the additional amount. Employees have 31 days after termination of coverage to apply in writing and pay the first monthly premium for conversion coverage.
Extension of claims. If a person insured under the group policy dies during the conversion period and before an individual policy is effective, the amount of insurance that the person would have been entitled to ...