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.

Where this term matters

Life Insurance →Disability Insurance →Insurance Companies →

Tip

Glossary definitions are educational. Always check your own policy language — insurers can define common terms differently from one another. When in doubt, request a written explanation from your agent.

Related terms

Term Life InsuranceLife insurance with a fixed term (10/20/30 years) — pure death benefit, no cash value, lowest cost.BeneficiaryThe person, entity, or trust designated to receive the death benefit of a life insurance policy.Contingent BeneficiaryA contingent beneficiary—also called a secondary beneficiary—is designated to receive the life insurance death benefit only if all primary beneficiaries have predeceased the insured or disclaim their interest at the time of claim.Convertible TermA convertible term policy gives the policyholder the right to convert all or part of the term coverage to a permanent life insurance policy—such as whole life or universal life—before a specified conversion deadline, without proving insurability.Waiver of Premium RiderA waiver of premium rider keeps a life insurance policy in force without requiring any premium payments if the insured becomes totally disabled before a specified age—commonly 60 or 65—and remains disabled for the required elimination period.

Related guides

Source: Cover Forge USA editorial team|Last verified: May 2026|Methodology
Definitions are educational and may be simplified. Always refer to your policy contract and consult a licensed agent for terms that affect coverage decisions.
CF

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 June 2026

Get Insurance Updates

Occasional updates on insurance rules, coverage changes and new guides — and ways to save.

  • ✓State-specific insurance rule changes
  • ✓Seasonal enrollment deadline reminders
  • ✓Expert tips to lower your premiums
  • ✓New coverage options in your state

Free forever. Unsubscribe with one click. No spam, ever.

Important Disclaimer

This site provides general educational information only and is not a substitute for professional insurance advice. All rates, data, and coverage details are estimates and may not reflect your actual premiums. Insurance availability and pricing vary by state, insurer, and individual risk factors. Always consult a licensed insurance professional in your state before making coverage decisions.

← Back to Insurance Glossary (355 terms)