Group Life Insurance
Group life insurance is an important component of any benefit program. Although many employers do provide a minimum amount of life insurance, $10,000 – $15,000 in most cases, IRS regulations allow business to provide up to $50,000 of life insurance to employees as a tax free benefit. Life insurance may be provided as a flat benefit where all employees receive the same amount of coverage, a multiple of earnings, or a benefit based on job classification.
While life insurance is usually the least expensive benefit offered by an employer, it could well be the most important. According to statistics released in August, 2004 by the Life Insurance Marketing and Research Association (LIMRA), only 41% of adult Americans have individual life insurance. For this reason, we strongly encourage our clients to include some level of life insurance in their benefit program.