Group term life
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GROUP TERM LIFE INSURANCE Help employees protect their families with group term life
Work may be just one part of our lives, but employee benefits can play an important role in everything else. When you provide group term life insurance, employees have the security of knowing their loved ones will have financial protection if the unexpected happens.
What group term life insurance offers
You can help replace employees’ lost income should the worst happen. Many companies provide a base level of term life insurance, but we’ll help you create the right package for your workforce.
A financial safety net
Provides employees with a death benefit to help cover expenses if they pass away unexpectedly
Cost-effective protection
During prime working years, premiums are generally lower than permanent or individual life insurance
Family friendly
Optional coverage for employees’ dependents is available at an additional cost
Added benefits of group term insurance
Tax-free income
If someone covered by group term life dies unexpectedly, their loved ones will receive a payout without needing to pay any federal income taxes
Accelerated death benefit
Some of the death benefit may be paid early if the insured person has a terminal illness and less than a year to live1
Accidental death and dismemberment
This can be added to provide financial protection in the event that an accident causes severe injury or death
How group term life coverage differs from employee’s whole life
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An economical choice during your employee’s working years. Offers temporary protection and can be paid by the employer, employee, or a combination of both. |
Permanent protection paid for and owned by the employee, so it stays with them even if they change jobs or retire |
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Provides valuable death benefit protection while employed. The employer is the policy owner, meaning employee’s may lose coverage if they leave their job or retire. |
Permanent and portable insurance that is not tied to any specific group plan. Since the policy is owned by the employee, they have full protection for the life of the policy. |
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Premiums may remain level for a certain period, but they generally increase when the insured reaches a new age group |
Premiums are locked in at the time of purchase. They will never go up regardless of the insured’s health, age, or the state of the economy. |
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The accelerated death benefit option pays a portion of the death benefit if the insured is diagnosed with a terminal illness1 |
Policy owners are automatically eligible to receive dividends2. The policy builds cash value that is guaranteed3 to grow, tax deferred4, over time. |
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Typically, neither type of policy requires beneficiaries to pay federal income taxes on the death benefits they receive4 |
Typically, neither type of policy requires beneficiaries to pay federal income taxes on the death benefits they receive4 |
Common questions about group term life insurance
The cost of group life insurance for your employees depends on your company budget, how much coverage you choose, and the unique characteristics of your workforce. Connect with an agent for quotes, guidance, and answers to any questions you may have.
Group term life insurance provides temporary life insurance coverage for all of your eligible employees, and at a lower cost than individual or permanent policies. If the unexpected happens, this type of coverage would help replace some of the employee’s lost income by paying a death benefit to their loved ones. Policies can also cover eligible family members of employees.
Yes, you have options when selecting group life insurance. You can extend term life coverage to employees’ families and you can add coverage for accidental death and dismemberment (AD&D). Your agent can help you find the group insurance plan that works best for your company.
Group benefits are issued under a master contract that covers a pre-selected group of people, regardless of individual considerations or insurability. It’s a way for a company to provide life or disability insurance, for example, to their employees at lower rates. Individual insurance policies are purchased by customers who work directly with an agent. When you offer group benefits through New York Life, your employees have direct access to our professional guidance and may also purchase individual policies through us.
Yes, if you choose to give employees the option. In that case, your company might provide group term life insurance as a benefit. Employees can purchase employee whole life insurance for additional, permanent coverage—but without the need for a medical exam. Our agents are always available to discuss options with you or your individual employees.
There are more ways to support your workforce
1Not to exceed the lesser of 80% of the insured person’s life insurance amount or $500,000.
2While dividends are not guaranteed, participating eligible policy owners have received them every year since 1854.
3All guarantees are based on the claims-paying ability of the issuer.
4Neither New York Life nor its agents provide tax or accounting advice. Please consult your tax professionals regarding your particular situation.
New York Life Group Term Life Insurance is issued by New York Life Insurance Company.
New York Life’s Group Term Life Insurance with AD&D program may be subject to the Employee Retirement Income Security Act of 1974 (ERISA). You should consult with your tax and legal advisors regarding the applicability of ERISA to this program and your responsibilities, if any, under the program.
New York Life, its subsidiaries, agents, and employees do not provide legal or tax advice.
These policies have exclusions, limitations and terms under which the policies may be continued in force or discontinued. For costs and complete details of the coverage, please contact your New York Life agent or the company.
In Oregon, the Group Term Life policy form number is ICC16EB-Life-P.