Group Term Life Insurance is a popular benefit that is low in cost. Most employers pay for this benefit as an incentive benefit to their employees at no cost. Most popular are flat amounts of $10,000, $15,000 or $25,000 or times salary policies. This benefit is not portable and ends when the employee no longer works for the company.
Voluntary Term Life Insurance is another product that allows the employer to bring additional amounts of life insurance coverage to the employee which they can purchase at group rates. This is a very popular benefit for the employees and owners and there is no additional cost to the employer. The policy parameters are normally driven by the size of the group. By offering this type of coverage it also allows employees to purchase additional coverage for their spouse and children at the same low group rates. Unlike Group Term Life this coverage does not end when the employee terminates employment. The employee may elect to keep this coverage at the same group rates as long as the company has the policy in place. Additionally, some employees may not be able to get life insurance due to an illness that makes them uninsurable and this allows them to purchase some level of coverage without health questions.
Copyright © 2010, Oden Roberts and Rohrman
