Group Life Insurance Employees today expect an employer to provide a simple group term life insurance plan. Group life is a very inexpensive addition to a company's employee benefit program. It is one of the best bangs for the buck benefit. The advantages to the employer are: Most employees have little life insurance above what is provided by the employer. The business is under a moral obligation to provide some benefit should an employee die.  Employees can appreciate the advantage of corporate paid term life insurance up to $50,000, without any income tax attributable to the professional for this benefit. Even then, amounts over $50,000 are only taxed to the insured according to the very low Table I rates. (This assumes the plan meets certain non-discrimination tests). The premiums are tax deductible to the business A business can set up group life coverage several different ways. Discrimination can not be by individual, only by class of employees. The optional methods are: The life insurance is often set up in relation to salary, one or two times the employee's salary.  It can also be a position plan providing different classes differing amounts of coverage.  Or it can be a flat amount such as $50,000 for all employees, or a combination like 1X income to $100,000 for managers, 1X income to $50,000 for supervisors and $1X income to $25,000 for all other employees. A group term life plan can be supplemented with a voluntary life benefit. Employees can choose to purchase additional amounts on themselves or their family on a payroll deduction plan. The advantage to the employee is: The rates are group and normally lower Minimal underwriting even some guarantee issue is available Payroll deduction of the premiums for convenience read more about group life