Group life insurance is a very inexpensive product that an employer can offer to employees. These policies are typically guaranteed issue, which means there is no underwriting necessary and in most situations all employees would typically be insured under the group plan.
IRC section 79 provides an exclusion for the first $50,000 of group-term life insurance coverage provided under a policy carried directly or indirectly by an employer. There are no tax consequences if the total amount of such policies does not exceed $50,000. The imputed cost of coverage in excess of $50,000 must be included in income, using the IRS Premium Table, and are subject to social security and Medicare taxes.
Types of group plans:
Basic Term Life — One year renewable group term life insurance that provides a scheduled benefit amount or multiple of pay to an employee’s beneficiary in the event of the employee’s death. You will appreciate our generous maximum and non-medical issue amounts.
Supplemental Term Life — Employee-pay-all (voluntary) protection that offers employees additional amounts of group life with portability (portability feature subject to state availability).
Dependent Term Life — A voluntary enhancement to life plans that offers employees the opportunity to purchase group term life insurance for their spouses and/or dependent children at group rates.
Following are some of the Life Insurance providers we recommend:
o Aetna
o Aflac
o Ameritus
o Anthem
o Boston Mutual
o Carefirst
o Cigna
o Coventry
o Destiny
o Dominion
o Eastern Life and Health
o FlexAmerica
o Fort Dearborn Life
o Genworth
o Guardian Life
o Great West
o Harleysville
o The Hartford
o Humana
o Jefferson Pilot
o Kaiser Permanente
o Mamsi
o Metlife
o Mutual of Omaha
o Pacific Life
o Principal
o Prudential
o Reliance
o Sunlife USA
o Standard
o Superior
o Concordia Companies, Inc.
o UNUM
o Unicare
o UniAmerica
o UnitedHealthcare
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