Group Life Insurance
Basic Life Insurance
Employer-paid basic life insurance provides a death benefit to an employee's beneficiaries — typically equal to one times annual salary. It's a standard component of competitive benefits packages, costs relatively little per employee, and provides meaningful protection for employees who might not otherwise have life insurance coverage.
Group Life Insurance
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.