July 18, 2008, Newsletter Issue #113: Tips on Group Life Insurance as an Employee Benefit

Tip of the Week

Many employers now offer employee group life insurance as a benefit for staff members. In today’s workplace, employers are constantly seeking ways to foster an environment that builds morale thus increasing productivity and decreasing turnover. Employee group life insurance is also an attractive benefit that increases an employer’s appeal to well qualified candidates.



These policies offer needed coverage for employees at attractive rates for employers. Employers considering group term life insurance may be surprised to learn that there are no tax consequences of these policies under certain conditions (for example, on group term insurance coverage amounting to $50,000 or less, and carried directly or indirectly by the employer).

Employers with concerns about cost or very limited budgets can still offer employee group life insurance using one or more of the following strategies:


Offering policies with a face value that covers only final expenses
Offering the opportunity for employee contribution
Restricting enrollment to full-time employees
Delaying new employee enrollment for a specified periodYour employees are probably are very diverse group. There is wide variation in age, health history, nicotine use habits and so forth. Employers should evaluate several proposals to get the best coverage for employees at the best cost.

About LifeTips

Now one of the top on-line publishers in the world, LifeTips offers tips to millions of monthly visitors. Our mission mission is to make your life smarter, better, faster and wiser. Expert writers earn dough for what they know. And exclusive sponsors in each niche topic help us make-it-all happen.

Not finding the advice and tips you need on this Life Insurance Tip Site? Request a Tip Now!


Guru Spotlight
Sherril Steele-Carlin