Group Life Insurance / Voluntary Life Insurance

Businesses often provide employees with a small life insurance policy of $25,000 to $50,000.  This coverage is designed to provide basic life insurance needs of the employee.  

There are Internal Revenue Service rules that require an employer to report the value of employer-paid life insurance amounts greater than $50,000.  This “imputed income” is reported on the employee’s W-2.  For this reason, our independent insurance agents typically design an employer-paid group life insurance policy that does not exceed $50,000.

Voluntary life insurance products are designed to provide low-cost group life insurance to your staff.  Employees typically pay 100% of these premiums.  Depending on the size of the business, employees can purchase up to $500,000 or so of coverage.  Because this is a group employee benefit the life insurance company will relax its underwriting requirements and provide lower group premium rates.

Let us analyze your life insurance needs and offer a cost effective solution.

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