Group Life Insurance is purchased by employers on behalf of employees to provide benefits coverage to employees and their dependents. Insurance companies require a high percentage of participation among employees in order to make programs feasible. Group Life Insurance provides employees with the opportunity to access insurance coverage that could otherwise be prohibitive by cost. Many coverage's are also available without having to provide medical history.
Premiums paid by the employer on behalf of employees are tax deductible.
The security provided to employees by benefit packages helps to encourage a productive atmosphere in the workplace. The amount of coverage usually corresponds to the amount reflected by the Group Life Insurance plan. Dependent Life Insurance provides coverage for spouses and dependent children.