Foundational Protection for Your Team, at Rates Individuals Rarely Get.
Employer-sponsored life coverage as a benefits cornerstone
Employer-sponsored group life insurance gives a workforce a foundation of financial protection at rates individuals rarely obtain on their own. Issued as term life under a single master policy the employer holds, it is one of the most common and lowest-cost benefits an employer can offer — and one employees consistently value.
Its real advantage is access: a guaranteed-issue amount lets most employees get meaningful coverage with no health questions or exam, which matters most for older workers or those with conditions that make individual coverage expensive or unavailable. Designing it well means right-sizing those limits, managing the tax treatment, and preventing the coverage gaps that appear when people leave.
What Group Life Insurance Includes
A group life program is built from a few layered components:
Basic Group Term Life — Employer-paid core coverage for all eligible employees, usually a flat amount or a multiple of salary.
Voluntary / Supplemental Life — Employee-paid additional coverage bought through payroll deduction in set increments.
Dependent / Spouse & Child Life — Smaller amounts of coverage on a spouse and children, usually employee-paid.
Group AD&D — Pays an additional benefit for accidental death and a schedule of benefits for the loss of limbs, sight, or hearing.
Key Considerations
Group life has design details that determine who's actually covered and for how much:
Guaranteed issue lets employees enroll up to a limit with no health questions, while amounts above it require evidence of insurability and can be declined
Plans cap the maximum benefit and often reduce coverage at older ages
Portability lets a departing employee keep group term coverage at group rates, while conversion switches it to an individual permanent policy at higher rates — both on short deadlines
AD&D generally can't be converted, and voluntary AD&D portability isn't available in some states
Employees who miss the election window at termination lose coverage entirely
Who It's For
Group life fits nearly any employer and workforce, including:
Employers of almost any size building a competitive benefits package
Employees wanting baseline protection without underwriting
Older employees or those with health conditions who benefit most from guaranteed issue
Employees with dependents who want convenient, payroll-deducted family coverage
How Plans Are Structured
The structure and tax treatment shape both cost and paychecks:
The benefit is set as a flat amount or a multiple of salary, with voluntary tiers layered on top
Basic life is usually fully employer-paid, while voluntary and dependent life are employee-paid by payroll deduction
Rates are group-pooled and age-banded, far below comparable individual term
Under IRC Section 79, the first $50,000 of employer-paid coverage is tax-free, and coverage above it creates imputed income calculated on the IRS Uniform Premium table and reported on the W-2
Enrollment happens at hire and open enrollment, with amounts above the guaranteed-issue limit requiring an evidence-of-insurability form
Real-World Scenarios
An employee with one-times-salary basic life dies, and the beneficiary receives the benefit income-tax-free
A 52-year-old with $150,000 of employer-paid coverage has imputed income on the $100,000 above the exclusion, added to W-2 wages
An employee dies in a covered accident with matching life and AD&D, and the beneficiary receives both benefits
An employee leaving the company elects portability within the window to keep voluntary coverage rather than lose it
Why Thoughtful Plan Design Matters
Group life is inexpensive but easy to under-design, so it pays to get right:
Group life is table-stakes for recruiting and retention at a low per-employee cost
Right-sizing guaranteed-issue limits lets more employees enroll without friction
Educating employees on portability and conversion deadlines prevents lapses at termination and retirement
Communicating Section 79 imputed income avoids payroll and W-2 surprises
Compliance Context
Group life is governed primarily by IRC Section 79, which sets the $50,000 exclusion, the Uniform Premium table used for imputed income, the "straddle" rule that can make a voluntary plan employer-carried, and the de minimis treatment of small dependent coverage. Most employer group life plans are ERISA welfare benefit plans requiring a plan document and summary plan description, state insurance law governs policy provisions and conversion rights, and death benefits themselves are generally income-tax-free to beneficiaries.
Our Approach
At Cory Washington & Co., we design group life around your workforce — negotiating guaranteed-issue limits that let more employees enroll without underwriting, structuring salary multiples and caps that fit, and making sure portability, conversion, and Section 79 imputed income are communicated so there are no gaps or paycheck surprises. We build it as part of a coordinated benefits program rather than a standalone afterthought. It pairs naturally with a broader life and health benefits program and our risk management services.
Our goal is life coverage employees actually understand and keep — designed to recruit, retain, and protect.
All benefit descriptions on this website are provided by Cory Washington & Co. LLC strictly for general informational purposes. They are not intended to be, and should not be relied upon as, legal, tax, financial, or insurance advice. The information presented is general in nature and does not guarantee the availability, terms, conditions, or scope of any plan or coverage. Actual coverage is determined solely by the specific plan documents and policy language issued by the insurer and remains subject to underwriting and eligibility. Nothing on this website creates or implies an agent-client relationship, binds coverage, or alters any existing plan. Cory Washington & Co. LLC expressly disclaims any liability for actions taken, or not taken, based on the content provided here. For advice regarding your particular situation, please consult directly with a licensed professional at Cory Washington & Co. LLC or another qualified professional, and always review your plan documents in full.
See what to confirm in a group life policy — what's standard, what's often limited, and what to add if needed — plus the gap most often missed, in the Group Life Policy Feature Checklist.
Complete the Group Life Supplemental online in a few guided steps, download the fillable PDF, or browse all applications.
Frequently Asked Questions
How do I get group life insurance plans through Cory Washington & Co.?
Request a quote or contact our team. We start with a short conversation about your operations, analyze your exposures, then negotiate group life insurance plans across multiple carriers that compete for your account and present options with the trade-offs explained. Cory Washington & Co. LLC is licensed in all 50 states.
What drives the cost of group life insurance plans?
Premiums vary from business to business. The main drivers of group life insurance plans pricing are the nature of your operations, your revenue and payroll, your loss history, and the limits you carry. Rather than quote a flat figure, we negotiate across several markets and walk you through the options, so you only pay for the protection you actually need.
Do I need group life insurance plans?
It depends on your situation. Some coverage is required by law; more often, group life insurance plans is required by a contract, lease, lender, or client before they will do business with you — and even when it is not mandated, it guards against exposures that can be severe. We review your operations and obligations and tell you plainly what you need and why.
What if another agency has already declined or non-renewed my coverage?
Difficult, specialty, and previously-declined placements are a core part of our work. We access excess & surplus (E&S) and specialty markets that many generalist agencies cannot, and we explain the trade-offs clearly so you can decide with confidence.
Available in all 50 states. See how requirements differ in California, Texas, Florida, New York, or choose your state.