Life Insurance
Group Life Insurance
Group life insurance is a single master policy—typically issued to an employer—that provides term life coverage to all eligible employees, usually at one to two times their annual salary, with premiums often paid fully or partly by the employer and no individual medical underwriting required.
Last reviewed: May 2026 · Editorial methodology
Definition
Group life insurance is one of the most common employee benefits in the United States, offered by approximately 60% of employers according to Bureau of Labor Statistics data. Coverage is provided under a single group contract issued to the employer, with individual employees receiving certificates of participation rather than individual policies. The most prevalent design is employer-paid basic group term life equal to one to two times the employee's annual salary, with an option for employees to purchase supplemental coverage in additional multiples—up to five to ten times salary in some plans—via payroll deduction. Guaranteed issue amounts—typically $300,000–$500,000—require no medical underwriting; coverage above the guaranteed issue threshold requires evidence of insurability. Group term life insurance premiums paid by the employer for coverage up to $50,000 of death benefit are excluded from the employee's taxable income under IRC Section 79; employer-paid premiums on coverage exceeding $50,000 create imputed income taxable to the employee based on IRS Table I rates. The primary limitation of employer group life insurance is its portability—most group coverage terminates upon employment separation, though employees typically have a 31-day window to convert to an individual policy at standard rates, without a new medical exam, which can be critical for employees who have developed health conditions during employment.
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Cover Forge USA Editorial Team
Editorial Lead
This article was researched and written by the Cover Forge USA editorial team against federal sources (NAIC, CMS, FEMA, DOL, SSA, state DOIs) and standard policy forms. Bylines organize content by topic — they do not assert individual licensure. See our editorial-policy for details.
Reviewed 2026-06-14
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