Group Life Insurance

Group Life insurance and accidental death and dismemberment benefits are part of most employee benefit plans. The plan design can vary widely from business to business but most often you will see the following plan designs:

• Income Multiple:
         Example: 1, 2, or 3 times annual salary.

• Flat Amount:
         Employees in each class receive the same flat amount of life insurance
         (Benefit amounts can vary by employee class Executive/administration)

         Example: $15,000 of life insurance for all sales persons
         $40,000 of life insurance for all Executives

• Supplemental:
         Employees are provided a base amount of life insurance, and then given the opportunity          to purchase additional amounts of life insurance which are deduct

Non-Medical Maximums:
Important: All group life insurance plans will have a guaranteed issue amount of coverage. This is the maximum amount of life insurance a person can receive without providing medical information. The non-medical maximum amount can be as low as $10,000 and as high as $100,000, but will vary by insurance company and group size.