Basic Life Insurance
Employer-paid basic life insurance provides a death benefit to an employee's beneficiaries, typically equal to one times annual salary.
Basic Life Insurance
It's a standard part of a benefits package, and it gives employees who might not otherwise have life insurance a benefit for their families.
What You Need to Know About Basic Life Insurance
One Times Salary Standard
The most common employer-paid life benefit is one times annual salary, though some employers offer multiples of salary (2x or 3x) for key employees or as a competitive differentiator. Benefits above $50,000 have imputed income implications for employees.
Guaranteed Issue
Group life insurance is typically issued on a guaranteed basis for new hires up to a specified amount, without medical underwriting. This is a significant advantage for employees who have health conditions that would make individual life insurance difficult or expensive to obtain.
Beneficiary Designation
Employees designate beneficiaries when enrolling. A consistent reminder to review and update beneficiary designations, especially after life events, is part of good benefits administration and ensures benefits reach the intended recipient.