The Employer’s Guide to Group Life Insurance

In the world of employee benefits, life insurance usually takes the backseat to health and retirement plans. However, for some employees knowing their loved ones are financially protected in the event of a death is priceless. This is where group life insurance comes into play. Offering life insurance to your employees improves their benefits package immensely. And shows them that you truly care about their peace of mind. Additionally, going the extra mile helps when it comes to recruiting new employees, as they’ll likely be impressed with your extensive coverage options. Seems like a no-brainer, right? Well before getting too excited, let’s explore some of the details surrounding group life policies, so you can have the utmost confidence when making a purchasing decision. 

What is Group Life Insurance?

Group life insurance is just like any other group insurance policy. Simply put, it’s a single policy that covers a group of people (generally employees of a company). These types of plans are usually purchased by the employer, giving employees the option to opt-in and become a covered member. Like most types of group plans, group life insurance tends to be cheaper than individual life policies, since the risk is spread out over multiple individuals.

How Do They Work? 

Group life insurance policies operate under a master policy that is held by the employer. This master policy governs how the group life program operates. In turn, employers are generally provided with certificates of insurance as proof of coverage. When determining premiums, the group as a whole is taken into consideration. Factors such as the average age of the group, the type of work being performed, and more are all taken into account. In the unfortunate event that an employee passes away, it is the beneficiaries responsibility to receive their allotted benefit. 

Employer and Employee Benefits

As briefly mentioned, having access to group life benefits has tremendous upsides for both the  employees and yourself, the employer. If you’re still not sure about adding a group life option to your benefits package, here are some reasons why you may reconsider:

Employer Benefits

  • Enhancement of your overall benefits package.
  • Helps in the recruitment of new employees.
  • Helps to retain top talent. 
  • Tax benefits (the cost of your plan can be tax-deductible).
  • Promotes a positive reputation. 

Employee Benefits

  • Provides a basic level of life coverage at little to no cost. 
  • Ensures the financial security of loved ones in the event of death. 
  • Provides the option to purchase additional coverage at lowered rates. 
  • Simple enrollment, and usually no exams required. 

Key Considerations When Shopping 

While shopping for a group life policy, there are a number of considerations to take into account. Thinking about the following details ahead of time will ensure that your selected plan satisfies both you and your employees:


  • Coverage Amounts: Determine the amount of coverage that will automatically be provided. You should also think about what additional coverage, if any, you want to offer to your employees. Remember that individual employees will need to opt-in to receive additional coverage if you choose to offer it. 
  • Cost: When thinking about the cost, take into account both your employee’s perspectives, and the perspective of the company as a whole. Paying attention to the cost of a plan is even more important if you offer optional, additional coverage. 
  • Plan Eligibility: Make sure to understand who qualifies for coverage, or more importantly, take note if there is anyone who doesn’t qualify. Additionally, don’t forget about any waiting periods. 
  • Portability: Another decision you’ll need to make is whether or not employees can keep their coverage if leaving the company.
  • Limitations and Exclusions: Don’t forget to think about any situations or conditions that are not covered by the policy you are considering.

Final Thoughts…

Offering group life insurance is a great way to showcase your appreciation for your employees. By providing them with financial security for their families. New recruits will love the extensiveness of your benefits package, and current employees will appreciate the affordability There’s a lot that goes into life insurance policies. But by understanding the benefits at hand, and the needs of your workforce, you’ll have no problem picking an option that satisfies everyone! So, take your time, read the fine print, and soon enough you and your employees will be on your way to a more secure future!


If you’re interested in group life coverage or a variety of other group insurance benefits, GHQ is your one-stop shopping destination. We make it simple for you to view the best quotes and plans in your area all in a matter of minutes. If you need help along the way, our team of trusted insurance experts are available around the clock to assist. So what are you waiting for? To get the quote process started, just fill out our form or call us at 888-571-0291.

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Brianna Hartnett

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