Employee Benefits

Although not commonly offered, companies can make life insurance part of their employee benefits package. Similar to group health insurance, employers can purchase a group life insurance policy that can offer coverage to employees at much lower costs than if they purchased individual life insurance.

Group life insurance and individual life insurance serve the same purpose: to help relieve some of the financial burden that dependents and loved ones typically have to shoulder when one passes away. A life insurance policy guarantees that the insurer pays a certain amount of money that could cover debts, and various expenses.

Once you as the employer have purchased a group life insurance policy, you are considered the master contract holder. Employees who elect to participate in your group life insurance policy will then receive a certificate of coverage. This certificate will allow them to obtain their coverage and also transition to an individual life insurance policy if they leave the company.

As the master contract holder, you would pay most of the premiums. The amount of coverage in exchange will usually be equal to your employees’ annual salary, but coverage can also be double their annual salaries. This will depend on the policy you purchase, which can be difficult considering the countless options available, but that’s why Pangea is here to help. With our vast network of insurance providers, we will take the time to understand the goals you have for your employee benefits package and help you create one that fits your goals and attracts/retains talent.

“Term life insurance” is the most common type of group life insurance. Affordable and fairly easy to maintain, it is offered on a yearly basis. Employees can choose to participate in your group insurance policy any year and can also renew it each year until the specified term ends.