A Closer Look...

How much group term insurance should be available?

Group insurance is a popular benefit offered by many companies. It is relatively inexpensive for the employer and in most cases, allows employees to purchase greater benefits for less than they could purchase through an individual policy. There are several factors that should be considered in deciding the amount of insurance to include in an employee group term benefit schedule. These include:

1. The employees' needs;
2. The overall cost of the plan;
3. The nondiscrimination requirements of the law; and
4. The ability of the employees to pay if the plan is contributory.

Brokers

Although insurance brokers are very knowledgeable in their products, it is advisable to understand and explore the above factors to make some decisions about group life insurance as a benefit before working with brokers.

Our specific services

We can assist in:

• Understanding the advantages and disadvantages of group term life insurance, as an employee benefit, on the organization and its employees
• Understanding the advantages of a contributory and non-contributory approach to financing group term life insurance and which approach to adopt based on your employees' needs
• Understanding the types of disability provisions that are used in group term life insurance policies and what this means for employees
• Understanding the IRC Section 79 eligibility and benefits tests
• Shopping for a group plan and minimizing costs