Many employers offering employee benefits consider group term life insurance an essential part of their benefits package. Why? It provides employees with a basic level of protection. Plus, adding voluntary term life insurance to your benefits package allows employees to purchase additional coverage for themselves and coverage for their dependents.
Who pays the insurance premium?
You can choose to pay for all, part, or none of the premium with Principal life insurance. If your budget is tight, employees could pick up the entire cost of premium with voluntary term life insurance.
When employees have life insurance, it helps them financially protect their loved ones if the unthinkable should happen. Life insurance provides a payment, also known as a death benefit, to beneficiaries after the insured person’s death.
No matter what stage of life your employees are in, they appreciate having life insurance to protect their loved ones. In fact, life insurance is an important part of many families' long-term financial plan.
Plus, offering group life insurance enhances your benefits package. And great employee benefits can help you attract and keep quality employees.
Life insurance helps your employees put the people in their lives first. If an employee passed away, the life insurance proceeds would go to the people designated as beneficiaries. Those funds can help loved ones manage financial obligations, such as: funeral expenses, mortgage or rent, college funding, daily living expenses, and more.
When you combine group term life (employer-paid) and voluntary term life (employee-paid) coverage, you offer an even broader range of protection for employees. Best of all, your employees have guaranteed coverage—meaning they can get up to a certain amount of life insurance without answering medical questions.
Our flexible life insurance lets you customize a package just right for your company. Here are a few highlights of our coverage.
Group term life (employer-paid) |
Voluntary term life
|
|
|---|---|---|
| Employee benefits | Flat benefits, percentage of salary or combination. | Increments or percentage of salary |
| Coverage amounts | Up to $1 million.
|
Up to $500,000. |
| Optional dependent coverage | Flat benefits for spouse and children up to age 26. | Flat benefits for spouse (up to $250,000) and children up to age 26 (up to $25,000). |
| Continuing coverage if employment ends | Conversion (change coverage to individual life policy) available. |
Conversion (change coverage to individual life policy) available. Portability (extend coverage to another group term life policy) available. |
Understanding group life insurance terms
Flat benefits
Coverage is a set amount. For example, a flat $20,000 is a life insurance benefit of $20,000.
Percentage of salary
Coverage is a percentage of the employee’s salary. For example, an employee has a life insurance policy that is twice (or 200%) their salary. Their salary is $50,000, which means a life insurance benefit of $100,000.
Increments
Choose from a flat dollar amount and let employees elect a benefit that fits their needs and their budget by selecting a benefit that is a multiple of that dollar amount. For example, if you select a $20,000 increment, employees could purchase $20,000; $40,000; $60,000, etc.
Accidental Death & Dismemberment (AD&D)
It’s no surprise. People have accidents every day. And, unfortunately, some of them are severe. Adding Accidental Death & Dismemberment coverage to group term life or voluntary term life provides your employees with even greater protection. A core benefit is paid for the loss of life, hands, feet, thumb and index finger, and vision as the result of an accident.
Extra features
—at no extra cost to you
Some of our group life insurance policies give employees access to extra services.
- Travel assistance: Helps employees ease some of the worries of traveling - whether in the U.S. or internationally. Share with covered employees.
- Will and legal document center: Lets employees create simple legal documents online.
- Identity theft kit: Allows employees to be proactive in protecting one of their most important assets—their identify.
- Beneficiary support: Helps those coping with the death of a loved one. Plus, spouses and dependents receive free online will preparation services. Share with covered employees.
- Emotional health support line: Provides free access to licensed behavioral health clinicians who can provide emotional support, tips for healthy coping, and referrals to local resources.
Talk to your financial professional about offering group life insurance. And, consider combining group life insurance with group disability insurance to offer a more comprehensive benefits package.
Compare your benefits
See how your benefits compare to what other organizations of your size, industry, and region offer their employees.