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Group Life

 

Group Life Insurance

Group Term Life insurance is a foundation of insurance protection for employees and their families. It provides protection for a specific period of time and pays a benefit only if the insured dies during the term. There is no cash value buildup in a term life insurance policy. Group Term Life insurance provides a base level of protection that can be enhanced by personal savings, individual life insurance and Social Security benefits. The death benefit is paid income tax free to the beneficiary.

 

Types of Group Term Life insurance

  • Basic Group Term Life coverage provides a basic level of life insurance, often paid for by the employer. Premiums for up to $50,000 of coverage paid by the employer are considered an income tax-free benefit to the employee.
  • Supplemental Group Term Life coverage is voluntary coverage paid for by the employee, allowing the employee to choose the amount of insurance that fits his or her personal and financial situation. Employers often offer this insurance in conjunction with an employer-paid Basic Term Life plan.
  • Portable Term Life insurance provides supplemental coverage to employees and dependents who lose eligibility under the group policy. Employees can take this protection with them if they leave the group or retire and continue coverage until age 70 (under most plans) by making payments directly to the insurer. Payments can be conveniently continued through electronic funds transfer (EFT).