Employee Benefits

Group Life Insurance

This service is not provided by LPL Financial

When it comes to life insurance, there are numerous policies to pick from, each with different terms and premiums. Did you know companies can also offer group life insurance for their employees?

Is Group Life Insurance a Worthy Benefit to Offer?

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.

How Group Life Insurance Coverage Works 

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

“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.

What Happens if an Employee Leaves Your Company?

Term life insurance only offers coverage for a specified term while the members are employed at your organization. If they leave, they have the option to use their certificate of coverage to switch to an individual life insurance policy.

Pangea Financial Group is Your Financial Advisor for Life 

Headquartered in Texas and Florida and serving clients in California, Georgia, Indiana, New Jersey, New York, Ohio, and other states, we exist to better serve you and your business by helping you design an employee benefits package that attracts and retains talent. If you’d like our assistance, please contact us. We would be more than happy to help!

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