Life insurance essentially comes in two types: Term Life Insurance and Permanent Life Insurance.


If you want life insurance for a set period of time — long enough to meet your anticipated responsibilities to those who depend on you — Term Life Insurance may be right for you.


If you are looking for flexibility and lifetime coverage, some form of Permanent Life Insurance may make sense. Permanent Life Insurance also offers access to a cash value component which can be put to good use during your lifetime. Often employers make additional insurance protection available for certain covered events or accidents.


Accidental Death and Dismemberment (AD&D) coverage generally pays for a covered accident that results in loss of life, speech, hearing or sight, or in paralysis. It can be available as a low-cost part of your company-paid basic coverage, an employee-paid coverage, or both.


Advantages to the Employer:

  • Federal income-tax deductible premiums.
  • Desirable fringe benefit to offer new employees.
  • Reduced turnover, saving your money in hiring and training costs.
  • Contributes to employee security, loyalty, and higher morale.
  • Valuable life insurance protection provided at a low group rate.


Advantages to the Employee:

  • Valuable life insurance protection provided at a low group rates.
  • Right to name and change beneficiaries at any time.
  • Waiver of Premium Disability Benefit rider is available at no extra cost.


Group Premiums:

The premiums for group insurance are based on the claims experience the insurance company has had among all of the plans they have inforce.  In addition, plan design and demographics play a role in determining the cost of insurance. An individual’s own health is not a factor.Since the premium rate is the same for everyone within the group, younger works subsidize the cost of older workers.


A major advantage of employer-provided group term insurance is that there are no tax implications to employees for amounts of $50,000 or less. The employer also benefits because the premiums for group life insurance are fully deductible to the company up to a certain amount.


Group life insurance coverage has become a valuable employee benefit. And, for many, an individual permanent life insurance policy is an appropriate way to bridge the gap between the amount of life insurance you need and the amount your employer provides. At RJames Associates and Benefit Brokers we can help you choose the right plan for your company. Give one of our professional associates a call today!