Group Life Insurance
In these fast paced, challenging, and competitive times it has become increasingly difficult to attract and retain top notch employees, but providing the benefit of Group Life Insurance can help.
A group life insurance program, in its basic form, provides for the payment of a certain sum of money in the event of death of an employee while in employment. It is a basic term assurance program which usually provides for the payment of a fixed sum or a multiple of the employee’s annual salary (e.g. 3x or 4x). The employer sponsors the program, and benefit is paid by the insurance company to the employee's beneficiary in the event of the death of an employee within the period of coverage (usually one year, and renewable annually thereafter). It is a very cheap form of life insurance and employees usually bear only a small portion of the premium payment, or none at all.
There are many reasons for an employer to consider a group life insurance program to be essential. Here are just a few of them: