As an employer it is impoertant to maintain a competitive group of benefits to attract the best employees. Group term life insurance is term life insurance offered to all members of a certain group, such as all the employees at a company. The insurance is provided at a group rate, which is typically cheaper than purchasing the same coverage individually. The employer typically pays all or part of the premiums for a certain amount of coverage.
Group term life insurance may already be one of your employee benefits. Organizations such as credit unions, labor unions and professional associations may also offer group term life to members. Whether you get group term life insurance from work or from another organization, you may be able to purchase additional insurance at the group rate. This can be less expensive than buying an individual term life insurance policy.
The benefit you are providing your employees are:
- Lower cost: Your employees may be able to buy additional term life insurance at the lower group rate.
- No exam: Employees that might get turned down or rated in apply for life insurance generally don’t have to answer health question or submit to an exam Most group term life insurance doesn’t require this, although an exam may be needed to buy additional coverage.