Group Term Life Insurance


An attractive and inexpensive benefit for you and your employees.

Group Term Life Insurance is a popular benefit among business owners and their employees. That’s primarily because this coverage is easy to explain, easy to understand, easy to administer, and relatively inexpensive, especially for companies with younger employees.

What is Group Term Life Insurance?
This is term insurance provided for employees on a group basis. The group can include all employees including owner-employees. As a result of group underwriting, rates are generally lower than for comparable individual policies.

How Does It Work?
Coverage is offered through a master or group policy you select, with features tailored to your company’s and employees’ needs. Insured’s designate their own beneficiaries.

Under one of the most common group policy arrangements, each member of the group receives a life insurance benefit equal to a multiple of salary. Example: At 1.5 times salary, workers earning $30,000 a year receive life insurance coverage equal to $45,000. Premiums are deductible for the business, and proceeds are received by the insured’s beneficiaries income tax-free.*

Who Needs Group Term Life Insurance?
Consider group term life if you want to provide your employees with an attractive, inexpensive benefit which is fully tax deductible. * Just as important, employees appreciate life insurance as a benefit. According to the National Association of Colleges and Employers (1998 report), life insurance ranks among the top five dollar-value benefits new hires look for from an employer.


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