3 Benefits of Group Life Insurance

Whether you are a business owner considering offering group life insurance to your employees or an employee considering opting in to a group life plan, you may want to know what the advantages of group insurance are. How are group life plans different from individual plans purchased from an agent? Here are some of the key advantages.

Lower Rates

Employers often receive low group rates for life insurance plans that they offer to employees. As such, employees receive the benefits of a lower rate, and employers benefit by making their company a more attractive place to work for.

Lower Barriers to Access

Invdividual life insurance plans usually require the applicant to take a physical exam before going through underwriting. Group life plans typically do not require these exams, which greatly simplifies the process of acquiring coverage. Employees—especially those with preexisting conditions that may cause them to receive high rates on individual plans—will appreciate the ease of access to a group life plan.

Tax Benefits

For the first $50,000 of coverage, the cost of the premium is not considered taxable income. Coverage beyond $50,000 will become taxable.

Ultimately, group life insurance is an attractive benefit that companies can offer prospective employees. It can boost company morale and help employees protect their families.