What Is Employee Life Insurance Benefit?

Employers purchase a group life insurance plan as an employee benefit for usually no cost to the employee. However, sometimes the employee is required to pay a small percentage of the plan to be a participant.

The face amount of life insurance coverage provided by the employee benefit life insurance plan is usually under $50,000 per employee, and varies by employee level, for example, higher salary employees may get more coverage than lower hourly workers. The amount of life insurance provided per employee is usually based on a percentage of your annual income.

The employee can then add to the face amount of life insurance by paying additional premiums usually deducted from their pay. 

This is a good employee benefit, however, do not rely solely on your employer provided life insurance plan. 

This life insurance coverage is lost if you lose your job, whether voluntarily or involuntarily. 

Make sure you always purchase your own life insurance policy, separate from your employer provided coverage, to protect your insurability and guarantee future life insurance coverage if needed.

Learn more about employee life insurance.