Group life insurance

Group life is a low-cost, high-perception benefit. A small basic life policy ($25K–$50K, guaranteed-issue) tells employees you're serious about them, and voluntary buy-up options let them extend coverage to their family — often without medical underwriting during initial enrollment.

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Coverage guide

What this page is about

Group life and disability benefits help protect employees and their families if death, illness, or injury interrupts income. This page is only about employer-sponsored life, short-term disability, long-term disability, voluntary buy-up, and how these benefits support retention.

Group protection vs. personal coverage

Group coverage is convenient and often inexpensive, but it is tied to employment and may have benefit caps. Personal life or disability coverage is individually owned, portable, and can be designed around the worker's actual income and family needs.

Basic group life is often employer-paid and set as a flat amount or salary multiple.
Group disability usually replaces a percentage of income after a waiting period.
Voluntary benefits can expand protection with employee-paid premiums.

What it usually covers

Basic term life for employees and sometimes dependents
Short-term disability for temporary income replacement
Long-term disability for extended illness or injury
Voluntary life, accident, critical illness, or buy-up disability depending on carrier

What it usually does not cover

Full personal income replacement for every employee
Permanent life insurance cash value unless a separate product is selected
Portability forever without conversion or portability rules
Every medical condition if evidence of insurability is required for higher amounts

Best fit

Employers wanting meaningful protection benefits without a full medical-plan budget increase
Groups with employees who have families or debt obligations
Businesses improving recruitment and retention
Owners who want a foundation employees can supplement personally

Usually not the right fit

Employees who assume group life replaces personal life planning
High earners whose disability benefit is capped too low
Groups that cannot meet participation rules
Employers who do not explain portability, taxes, and benefit limits

I position group life and disability as a strong foundation — then identify where owners and key employees may still need personal protection.

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How group life works

A group life policy insures each eligible employee for a flat amount or a multiple of salary. Premiums are set for the whole group, not each individual, which is why coverage is affordable even for people who'd be rated up in the individual market.

Basic life + AD&D at a flat amount ($15K–$50K) or 1–2× salary
Voluntary buy-up for employee, spouse, and dependents
Guaranteed-issue amounts during initial enrollment (no medical questions)
Portability options — some plans let employees convert coverage when they leave
Premiums are affordable at group rates that individuals can't get

Disability options

Life is often paired with short-term and long-term disability. Both replace a portion of income when an employee can't work due to illness or injury.

Short-Term Disability (STD): 60–70% of income for 3–6 months, after a short waiting period
Long-Term Disability (LTD): 50–60% of income to age 65 or 67, after a 90–180 day elimination period
Voluntary options let employees enroll on their own dime
Own-occupation definitions available for higher-earner classes

Structures we offer

How much of this the employer funds is up to you — every structure works.

100% employer-paid basic life + AD&D (typical)
Voluntary buy-up for employees and dependents
Employer-paid LTD as a retention benefit
Voluntary STD/LTD with payroll deduction

Who this fits

Any group of 2+ employees where the owner wants to show real investment in the team without a large budget hit. Basic life often costs a few dollars per employee per month.

Common questions

Do we have to pay 100% of the premium?

No — most groups pay the basic life premium in full and let employees pay for voluntary buy-up coverage through payroll.

Can employees convert coverage when they leave?

Most policies include a conversion right. Employees can convert to an individual whole-life policy without medical underwriting within a short window after termination.

How are group life premiums taxed?

Employer-paid coverage over $50,000 creates a small imputed income for the employee (per IRS Table I rates). Under $50K is fully tax-free.

Can spouses and dependents be covered?

Yes, via voluntary spouse and child riders. Guaranteed-issue amounts are lower than for employees; higher amounts require simple health questions.

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