With life insurance you can help pay final expenses and provide financial support for people who depend on you. Group coverage offered through an employer is one convenient way to buy protection.
First, understand that group coverage describes a policy available to a group of employees through their employer. This type of life insurance is commonly offered as Term Life Insurance, and your employer may pay some or all of the premium as part of the benefits package.
This coverage typically remains in effect while you work for the company and continue to pay any assigned premiums. It provides a set death benefit to the beneficiary you name if you die while covered.
Five reasons to consider group coverage
- Afford life insurance
Because a group is being insured at once, premiums for employer-sponsored coverage are often lower than comparable individual policies, making it easier to afford basic protection.
- Provide for loved ones
The death benefit goes to the beneficiary you name and can be used for final expenses, living costs, debt repayment, or other needs such as education or retirement funds.
- No medical exam required
Many group plans do not require a medical exam, so employees with certain health conditions can still qualify for coverage they might not get individually.
- Boost your overall coverage
You can often keep an existing individual policy and add employer coverage for extra protection, increasing the total benefit available to your beneficiary.
- Cover family members
Many group plans let you add a spouse and children to your policy without separate medical underwriting, with premiums collected through payroll deductions.
Some employers also offer industry-specific group options; for an example of a specialized offering, see Elevator Distributors Life insurance.
Protect your loved ones by reviewing your employer benefits and, if helpful, talk to an agent about the specifics of your plan.
Frequently Asked Questions
What happens to employer coverage when I leave my job?
Most group plans end when your employment ends, but some policies offer a conversion or portability option to an individual policy—review your plan documents to confirm.
Can I keep my own life insurance if I have employer coverage?
Yes. Employer coverage is usually supplemental, so you can maintain an individual policy in addition to the group plan for extra protection.
Will the death benefit be taxed?
Death benefits from life insurance are generally paid tax-free to beneficiaries, but other tax rules can apply to certain situations; consult a tax professional for specifics.
Can I add my spouse or children to employer coverage?
Many group plans allow dependent coverage, often without medical exams, but availability and costs vary by employer and plan.