Employee Life Insurance Benefits

As A Part of Your Benefits Plan

An employer often feels it obligatory to help the family of a deceased employee.  This is the reason that a Group Term Life plan often seems to be at the core of an employee benefits program. There is a great deal of flexibility when designing the overall schedule and the benefit is relatively inexpensive when compared to other benefits. Group Life is traditionally written on a term basis and is in effect as long as the policy is in effect and the employee is enrolled.

It can be structured in the following ways:

Basic Life

1. 1. One flat amount or one multiple of annual earnings for all employees
   2. Benefits can be set with each class receiving a different benefit. Classes can be determined using job titles or length of service
   3. Eligibility for the benefits can also be set that would cover only a particular class or classes of employees
   4. Minimum size group is two enrolled employees on a non-contributory basis
   5. For larger groups, funding can be partially contributory
   6. Coverage is always convertible
   7. Coverage is available on a guarantee issue (G.I.) basis with larger amounts available subject to evidence of insurability
   8. Portability is available under some plans
   9. Dependent Life coverage is available

Supplemental Life

1. 1. Fully voluntary (paid by the employee through payroll deductions) and is designed to offer employees additional amounts of coverage that supplement the basic non-contributory plan
   2. Usually designed to offer the employee various amounts to choose from (i.e. increments of $10,000 to $250,000)
   3. Cost is usually structured in five year age step rated brackets to recognize risk variance by age.
   4. Coverage is often written on a guarantee issue basis with higher amounts available subject to evidence of insurability
   5. Dependent coverage is available

Voluntary Life

1. 1. Stand alone plan. Written with no employer paid basic plan
   2. Fully paid by the employee through payroll deductions
   3. Usually designed to offer the employee various amounts to choose from (i.e. increments of $10,000 to $250,000)
   4. Cost is structured in five year age step rated brackets to recognize risk variance by age
   5. Dependent Life coverage is available

Basic, Supplemental and Voluntary Life are often available with multi year rate guarantees (two or three years) to make budgeting easier.  Supplemental and Voluntary Life insurance is an excellent way for you to offer your employees the benefits that they want without impacting your budget.

JayMar Insurance Agency can work with you to design a plan that is within your budget.  After obtaining your employee census and completing a full market study, we will present the most competitive plan designs for your review.