Do I need to provide Life Insurance for my Employees?
It is not a requirement for a business owner to provide Life Insurance to their employees. However, it is highly requested and is a great employee benefit. Offering Life Insurance as a business owner is not only beneficial for the employee but is also favorable for the employer because of lower rates offered.
What are the benefits of offering Life Insurance to my employees?
There are many benefits of offering Life Insurance to your employees which will be included below:
If a person is looking for a job, seeing that an employer provides a benefits package tends to be something that many people look for.
Life Insurance also allows your employee’s to have a peace of mind in regards to themselves and their family in the case that something may happen to them.
Purchasing Life Insurance through work is more affordable.
Who should be covered under the Group Life Insurance Plan?
Who should be covered under a Group Life Insurance Plan is completely up to the employer and which package he/she would like to offer. An employer may decide to offer Life Insurance to full-time employees, to key-person employees, or to all employees.
How much Life Insurance should I offer to my employees?
With Group Life Insurance policies, an employer may decide to set a certain amount he/she would like to offer to his employees or it may also be based on the employee’s income.
Is Group Life Insurance Whole or Term?
Group Life Insurance Plans are usually linked to Term Insurance which can be renewed yearly when a company enters open-enrollment.
How does Group Life Insurance differ from Individual Life Insurance?
When purchasing an Individual Life Insurance Policy, the individual would be the policy owner while having control over all the terms of the policy. The amount of Life Insurance an individual would choose to purchase would also be up to him/her. When a Group Life Insurance Policy is purchased, the contract covers not one person but an entire group of employees. Also, the policy owner would be the employer.
Is Group Life Insurance Taxable?
If an employer is paying up to $50,000 for a Group Life Insurance Plan, it is not taxable to an employee. If the amount goes over $50,000, the rest should be included in the employee’s taxable income.