Employer-sponsored group life insurance is one of the more affordable employee benefits available to many small businesses. If your company has 10 or more employees the options are unlimited and the total cost for employer-sponsored group life insurance is typically less than the premium to cover just one family for health insurance…really.
There are many group life insurance plan designs, but the most common is salary multiplier. Another option is to identify classes of employees, giving different benefits to different employees. Or you can implement both a multiplier and identify employee classes.
Employee 1 - Office Assistant making $30,000/year
Employee 2 - Mid-level Manager making $65,000/year
Employee 3 - High-level Executive making $175,000/year
Example 1
Salary Multiplier for All Employees- Two Times Salary (2x salary)
Employee 1 - $60,000
Employee 2 - $130,000
Employee 3 - $350,000
Example 2
Identify Employee Classes - One Times Salary for all Managers, Two Times Salary for all Executives, $10,000 for all other Fulltime employees.
Employee 1 - $10,000
Employee 2 - $65,000
Employee 3 - $350,000
There are many variations of the example just given and there are some restrictions. The DeChristopher Group would be glad to discuss your current situation and advise you accordingly. Please contact us, for more information about implenting a cost efficient group life insurance plan for your Company.