Group Life Insurance for Small Business

   

.

A popular employee benefit for both employers and employees is life insurance. Offering it is completely optional but worth considering if you and your employees can benefit from the possible lower rates of insuring a group. If you're considering including life insurance in your employee benefit package you will have several coverage issues to consider, including whom to cover and the type and amount of coverage to offer.

Group life insurance covers the lives of multiple persons such as some or all employees of a business, members of a labor union, or members of an association. Depending on the group life insurance policy, the insured person may receive life insurance coverage as an employee benefit, make a contribution to pay part of the cost, or may pay for the group life insurance policy on their own.

Tax implications. Generally, group-term policies are nondiscriminatory because the amount of insurance is consistently based on some multiple of each employee's compensation. If all the requirements are met, the cost of the premiums for the first $50,000 of group-term life insurance isn't included in the employee's gross income (for tax purposes). If the requirements aren't met, you can still provide the insurance, but the value of the insurance will be taxable compensation to the employee.

How Much Life Insurance is the Right Amount?

Most group-term policies offer either a set amount of insurance (for example, a $10,000 policy for each employee) or are based on the employee's salary (for example, policy values of one, two, or three times the employee's yearly salary). In some cases, you can allow employees to purchase life insurance in increments, the cost of which is based on their age.

Group life insurance costs

Your company's group life policy will be priced based on your company size, the average age of your employees, males vs. female ratio and your industry.


Does your business need a quote?

Mintco Financial has been serving thousands of small business owners getting Group Life Insurance for their businesses.

Mintco Financial will help you to decide the best plan for your employees.

Get a free quote at http://www.mintcofinancial.com/quotes/group-life-insurance-quote/

Or call us direct at 813-964-7100