Overview: Life insurance is a common benefit offered by employers to their employees. Employees who get life insurance can designate a beneficiary to receive payments on their policy in the event of their death.
With limited exceptions that are stated in the policy (a common example being suicide), the covered individual's beneficiary will receive payment if the insured dies for any reason. Getting the coverage helps reassure the policy holder that his or her family will be protected from an abrupt loss of income.
Trends: In many states, laws have been created that keep employers from discriminating against employees or potential employees for off-duty participation in undesirable but legal conduct, such as smoking. However, when it comes to life insurance, some of those laws do allow higher premiums for smokers.
Ashley Shaw, JD, Legal Editor
Employers seeking to identify which employees may be eligible for group life insurance and the types of life insurance available to them should consider including this model policy statement in their handbook.
Employers are required to report the life insurance premiums applicable to employees, based on an IRS table, for employer-provided life insurance premiums with benefit amounts in excess of $50,000.
In-depth review of the spectrum of Pennsylvania employment law requirements HR must follow in respect to taxation of employee compensation.
In-depth review of the spectrum of California employment law requirements HR must follow with respect to taxation of employee compensation.
In-depth review of the spectrum of Ohio employment law requirements HR must follow with respect to taxation of employee compensation.
In-depth review of the spectrum of New York employment law requirements HR must follow with respect to taxation of employee compensation.
This section helps HR professionals understand the value of offering certain benefits, such as life insurance, accidental death and dismemberment (AD&D) insurance, short-term and long-term disability benefits, and different forms of paid leave (e.g., vacation time, personal time, sick leave, holidays, jury duty leave, bereavement leave and sabbaticals).
Employment glossary definition of Group Term Life Insurance.
Employment glossary definition of Inside Buildup.
HR guidance on life insurance coverage.