Employee Assistance Program in Group Benefits Programs

Group life insurance is a type of life insurance provided by employers as part of a group benefits plan, offering financial protection to employees' beneficiaries in case of the employee’s death.

Employees who are part of a company offering group benefits are eligible. Coverage may extend to dependents if the plan includes optional spousal or dependent life insurance.

Coverage amounts vary but are often based on a multiple of the employee’s salary (e.g., 1x or 2x annual earnings) or a flat amount, such as $50,000.

If the employer pays the premiums, the benefit amount may be taxable to the employee’s estate or beneficiaries. If employees pay the premiums themselves, the benefit is usually tax-free.

Yes, most group plans allow employees to purchase optional life insurance to increase coverage beyond the basic plan, often at competitive rates.

Typically, group life insurance ends when employment is terminated. However, many plans offer conversion options to switch to an individual policy within a specific time frame.

The designated beneficiaries receive the life insurance payout, which can be used for expenses like debts, living costs, or future financial needs. The amount depends on the policy terms.