Group Life Insurance for Employers

At KSA Insurance, we work with employers in Charleston, SC and throughout the southeast to help them identify the best group life insurance options for their unique needs. We’ll work closely with you to find a plan that aligns with your business goals and budget. Learn more below, or request an online quote to get started.

Create a Competitive Benefits Package

As an employer, it’s important to put plenty of thought into the benefits package you offer to your employees. Benefits packages should be customized to suit both your company’s and your employees’ needs. A well-rounded benefits package can also help you to attract and retain top talent.

While group life insurance is an optional benefit, both employers and employees can benefit from the lower rates that come with insuring a group, so it’s certainly worth taking a look at your options.

Types of Group Life Insurance

If you are considering adding group life insurance to your employee benefits package, it’s important to consider what types of life insurance policies are available and how much life insurance to provide. While term life insurance is the most popular option, you may consider opting for alternative life insurance policies, such as group universal life insurance. Here’s what you need to know:

Term life insurance offers coverage for a fixed period of time. For employer-provided group life insurance, this term typically lasts as long as the employee remains employed at your business.

There are a few options when choosing a term life insurance plan:

  • Basic: Basic term life insurance is paid for by the employer and provides a financial safety net for employees’ families in the event of an employee’s death.
  • Voluntary: Voluntary term life insurance is paid for by employees should they choose to opt into the life insurance policy included in their benefits package.
  • Supplemental: Supplemental life insurance allows employees to increase their coverage as they see fit to accommodate their specific needs. If employees choose to increase their coverage, it comes at no cost to the employer.
  • Dependent: Dependent life insurance provides increased coverage for employee dependents. Like supplemental life insurance, these policies do not come at a cost for the employer.

Group Universal Life insurance (GUL) and Group Variable Universal Life insurance (GVUL) both offer guaranteed coverage as well as cash accumulation funds to help employees build cash value as long as their policy is active. These funds earn tax-deferred interest at relatively generous rates.

Both GUL and GVUL allow employees to access their cash accumulation funds without penalty before age 59.5. They also supplement qualified savings plans like an employee’s 401(k) plan.

To bolster your group life insurance policy, you may choose to add one or more riders that provide additional value to your employees.

Possible group life insurance riders include:

  • Accidental Death and Dismemberment (AD&D): Basic AD&D coverage is paid for by employers and offers an accidental death benefit equal to the existing group life insurance death benefit.
  • Business Travel Accident (BTA): BTA provides coverage for employees involved in accidents that result in injury or death while they are traveling for business purposes.
  • Voluntary AD&D: Voluntary AD&D is paid for by employees and is available whether or not they are enrolled in the employer-provided life insurance.
  • Supplemental AD&D: When paired with supplemental term life insurance, supplemental AD&D provides partial death benefit payment for covered accidents that result in non-fatal losses.

How Much Coverage is Enough?

When shopping for policies, you’ll notice that most policies offer a set amount of coverage for each employee or coverage dependent on a given employee’s salary. Depending on your policy, employees may also have the option of purchasing life insurance in increments.

How much coverage you should purchase is entirely dependent on your budget, your employees’ needs, and certain tax considerations. Since $50,000 is the threshold for non-taxable compensation, many group life insurance policies offer less than this.

If your group life insurance policy does exceed $50,000 in coverage for each employee, the premiums that you pay are considered taxable income for the employee. In addition to the employee having to pay income taxes, both the employee and employer have to pay payroll taxes on these premiums. For this reason, most group life insurance policies offer smaller death benefits than individual policies.

Get A Quote

Group life insurance is an affordable and immensely beneficial policy for both employers and employees. By working with an insurance agency to find the plan that suits your needs, you can offer a more enticing benefits package to existing and potential employees.

KSA Insurance has extensive experience working with businesses in Charleston, SC and throughout the southeast to help them find budget-friendly policies that offer comprehensive coverage at affordable rates. We work with most major group insurance carriers and are licensed with Blue Cross, Blue Choice, Cigna, United Healthcare, Assurant, and Trustmark.

Contact KSA Insurance today to get a personalized quote and learn more about our other insurance products.

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