Group Life Insurance Guide
Employee life insurance services to help maximize benefits and minimize cost for employers
What Is Group Term Life Insurance?
Group term life insurance is also known as employee life insurance. It is a life insurance product offered through an employer to all members.
This employee benefit can be offered through multiple organizations such as:
- Unions
- Businesses
- Associations
Individuals do not necessarily have to be employees to be eligible for the benefit.
Rather, they may qualify because they or their employer is a member of the organization.
How Does Group Term Life Insurance Work?
Employers or membership organizations can offer group term life insurance at no cost to the employees. However, the organization will incur some cost.
The benefits offered can range widely up to two years of an individual's salary.
The group term life insurance only lasts for as long as the individual is an employee or member of the organization.
Once coverage ends, sometimes individuals are able to convert the policy to individual coverage, though it is likely to be expensive.
When an employee leaves an organization it is recommended he or she to reach out to an independent insurance agent.
It may be more affordable for the employee to talk with an independent agent to see what additional options are available.
What Are the Benefits of Having Group Life Insurance?
Group life insurance can be very beneficial for a workforce. The three main benefits for an organization include:
- Minimal or no medical underwriting
- Potential to add additional coverage for dependents
- Organization controls the policy and its terms
For individuals with health issues or minimal cash flow, having a life insurance benefit available could be very beneficial.
This benefit will provide some financial protection to the family if the employee passes away.
Is Group Term Life Insurance Taxable?
Internal Revenue Code Section 79 generally allows employees to receive up to $50,000 of employer-provided group-term life insurance without paying federal income tax on the coverage.
If coverage exceeds $50,000, the employee may owe Social Security and Medicare taxes on the IRS-calculated value of the additional coverage—not the death benefit itself.
The taxable amount is reported on the employee’s Form W-2. Special rules may apply in certain situations.
Information current as of September 17, 2026. Source: IRS Publication 15-B.
Are Life Insurance Premiums Tax Deductible?
Life insurance premiums are not tax deductible for individuals as they are considered a personal expense.
However, for business paid premiums, these may be considered tax deductible for policies owned by company executives and employees.
Is Employee Life Insurance Expensive?
The cost of group-term life insurance can vary widely among organizations. Insurers commonly consider:
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The number of covered employees
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Employee demographics, particularly age
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The company’s industry and employee occupations
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The amount and structure of coverage
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The organization’s location and, for some larger groups, claims history
An older workforce or a concentration of employees in hazardous occupations may result in higher premiums. Some insurers may also consider the group’s overall gender distribution, although underwriting methods vary by insurer and state.
Plan design also affects cost. Higher coverage amounts, optional riders, salary-based benefits, and broader guaranteed-issue limits generally increase premiums.
Because insurers weigh these factors differently, organizations should compare multiple proposals and periodically review their coverage to ensure it remains competitive.
Information current as of September 17, 2026. Actual premiums depend on the insurer, state, plan design, employee population, participation, and underwriting method.
Source: Munich Re — Group Life Underwriting: Creating a Competitive Edge
Group Life Insurance Services
Langan Financial Group can help business owners, associations' and unions review group life insurance benefits.
Because Langan Financial Group is not tied to a specific benefits provider we can compare products from numerous companies.
This will allow us to see what product aligns best with your group benefits needs. We will do our best to provide you the best options to choose from.
We provide a collaborative approach when reviewing your options. We will discuss the pros and cons of each policy, so you can make an informed decision.
Get started today
Contact Us Today
Chat with a Group Life Insurance Agent
Langan Financial Group's insurance agents have over 50 years of experience servicing insurance policies for individuals and families.
Give us a call at 717-288-1880 to see how our local advisors can help with your insurance policy needs.
Or visit our group life insurance advisor contact page to fill out an inquiry.
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Langan Financial Group, LLC ("Langan Financial Group" or "LFG") is an SEC registered investment adviser. SEC registration does not constitute an endorsement of the firm by the Commission nor does it indicate that the adviser has attained a particular level of skill or ability. LFG may only transact business in those states in which it is registered, or qualifies for an exemption or exclusion from registration requirements.
Important information about our firm is on our Disclosures page. You can review our registration and disciplinary history on the SEC's Investment Adviser Public Disclosure (IAPD) website and, for brokerage registrations, on FINRA's BrokerCheck. This website is for general information only. It is not legal, accounting, or tax advice. Please talk with your own legal or tax professional about your situation. Important information about our firm is on our Disclosures page.
You can review our registration and disciplinary history on the SEC's Investment Adviser Public Disclosure (IAPD), website and, for brokerage registrations, on FINRA's BrokerCheck.
This website is for general information only. It is not legal, professional about your situation.
© Langan Financial Group
Harrisburg, PA Office
Address: 1863 Center St, Camp Hill, Pa 17011
Phone: 717-288-1880
York, PA Office
Address: 3405 Board Rd, Suite 200, York, Pa 17406
Phone: 717-773-4085
