Term Life Insurance
Group Term Life insurance is an important building block in employee financial security. Companies often underestimate the significance of Group Term Life insurance. Group life provides a base of protection. From this vehicle, other protection can be used to further supplement an employee’s personal savings, individual life insurance and Social Security benefits. This employer-paid basic coverage fills an immediate need for protection at no cost to employees.As personal and financial obligations grow, so does the need for life insurance. Most carriers now offer affordable supplemental term coverage providing employees added protection in amounts they determine. This supplemental coverage is voluntary and flexible. Following are some important questions to consider.

Why Should Employers Offer Group Term Life Coverage?

By offering Group Term Life insurance, an employer can:

• Help provide a financial safety net for employees and their families.
• Attract and retain key employees.
• Take advantage of a tax-deductible business expense on any premium payments.
• Use group buying power to secure competitive premium rates.

How Will Employees Benefit From Group Term Life Coverage?

Group Term Life insurance offers:

• A foundation of insurance protection for employees and their families.
• Coverage amounts up to $50,000 paid by the employer are income tax-free to employees.
• A death benefit provides survivors with an "emergency fund," allowing them to use individual life insurance and other funds for long-term needs.
• A voluntary plan allows employees to choose the amount of insurance; individual needs might vary to fit personal and financial situations.

How Do I Design A Group Term Life Plan?

Group Term Life insurance is flexible. This allows employers to adequately insure a group’s’ coverage for a relatively small cost. Because it is term life, coverage costs are reasonable.

Most carriers present two options employers can offer employees:

• Basic Group Term Life coverage -provides insurance for employees that's entirely paid by the employer.
• Supplemental Group Term Life coverage is voluntary coverage paid for by the employee. Supplemental coverage is typically offered in conjunction with an employer-paid basic term life plan.

The most popular ways to offer coverage are:

• On a salary-driven basis (multiples of annual salary)
• As a flat amount of coverage ($25,000, $50,000, etc.)