Group Life Insurance for Employees
Group life insurance is an important component of your total compensation package for employees. It demonstrates that your Canadian business cares about the wellbeing and financial security of its employees as well as their families.
Group life insurance will give your employees the peace of mind that comes from knowing their loved ones will receive a lump sum payment to help them cope financially during a time of bereavement.
Plus, because your business is purchasing a policy for a group, all employees will typically qualify for some level of coverage, regardless of their health or pre-existing conditions. Group life insurance also tends to be a much more affordable option for employees when compared to purchasing an individual policy.
Provide your employees with the comfort that comes from knowing their loved ones will be taken care of in the event of their death.
Areas We Serve
- Red Deer
- Fort McMurray
How Does Group Life Insurance Work?
Group life insurance is an employer-provided policy that offers staff a financial safety net for their family in the event of their death.
Your organization will purchase and manage the group life insurance policy on behalf of your employees; however, your participating employees will list the beneficiaries who will receive the death benefit should they pass away. This is different from corporate-owned life insurance in which your business is named the beneficiary in the event of the death of a key employee, such as a CEO or senior leader.
Understanding Group Life Insurance
What is group term life insurance?
Group life insurance is term life insurance, which is re-priced annually based on the average age of your staff. The benefit is set up either as a flat amount or a multiple of annual salary.
Not only will our specialty group life insurance brokers help you design your plan, but they’ll also conduct renewals and negotiations on behalf of your business.
What is the benefit amount for a group life insurance policy?
Your organization can define the benefit amount based on your budget as well as the needs of your employees. Typically, however, the benefit is equal to one to two times an employee’s salary, up to a defined maximum amount.
Our knowledgeable group life insurance brokers can provide guidance on defining the death benefit for your organization’s policy.
Who qualifies for group life insurance?
Group life insurance providers typically only offer coverage for individuals who are under the age of 70.
Beyond that, your organization will get to determine who is eligible for your group life insurance policy. For example, you may want to offer the coverage only to full-time staff who have completed their probationary period.
Also keep in mind that coverage is tied to your staff’s employment. This means they will no longer be covered under your group life insurance policy if they leave your organization or are terminated.
One of our expert group life insurance brokers can help you determine employee eligibility based on your budget and staffing levels.
How group life insurance benefits your employees
Group life insurance is a critical coverage that will help a deceased’s dependents and loved ones financially cope during a difficult time. While life insurance can be purchased individually, a group plan provides your employees with some distinct benefits:
Depending on the number of employees in your organization, employees may not have to complete a medical questionnaire or exam—as is typical with individual policies. This is because the insurance provider calculates premiums based on the risk of the entire group, not per individual (for example, an insurer will consider the ratio of female to male employees and the kind of work performed).This is extremely beneficial to employees who have health issues or pre-existing conditions that could result in astronomical individual policy premiums—or see them declined individual life insurance. For some of your employees, a group life insurance plan may be the only way they can provide financial protection for their family.
Because the cost is based on the average age of the staff, this protection tends to be much more affordable than purchasing an individual policy.
The cost of group life insurance
The cost of group life insurance will vary from business to business. This is because insurers factor the risk level of the group as a whole, including considerations such as:
- the ratio of women and men (women tend to live longer than men);
- employees’ ages (older individuals tend to present a bigger risk); and,
- the type of work involved (some jobs present a higher risk of death).
It’s important to keep in mind that a group life insurance cost may change at the annual renewal depending on any staffing changes (i.e., aging employees, a change in male-to-female ratio).
Our specialty group life insurance brokers can help your business create and manage a policy based on your goals, staffing levels and budget.
Why Your Business Should Provide Group Life Insurance
Providing group life insurance benefits your employees and your organization. Here’s how:
Your staff can rest easy knowing that, when they pass away, their dependents and loved ones will be financially protected. The death benefit can help families cover mortgage payments, debt payments, funeral expenses and much more.
Offering comprehensive and affordable group life insurance as part of your total compensation package can help your business recruit and retain loyal employees.
Working with Rogers Insurance on Group Life Insurance
Rogers Insurance is your best partner in group life insurance. Our specialty brokers have the expertise and experience to create a customized plan based on your business needs and goals. They understand how employee benefits, such as group life insurance, can help your business attract and keep top talent.
Furthermore, Rogers Insurance works with all the major group life insurance providers. This means we will find your business the most comprehensive policy and negotiate competitive rates.
As one of the largest, independent brokerages in Canada, Rogers Insurance prides itself on putting the needs of its clients first. We are proud to provide a human approach to insurance that is built on trust, respect and collaboration.
Contact our group life insurance team today to get a quote or to learn more about this coverage.