Group life insurance policies are taken out by an employer and offered to employees. As with any life insurance policy, if the employee dies, the benefit is paid to a beneficiary often a family member - chosen by the employee.

Cost

The premium is factored on a per $1,000 of the benefit of the employee. The price per $1,000 is almost always less than a dollar and usually in the area of 10 cents to 25 cents.

Employer Premium Contribution

Most employers cover 100% of premiums for group life insurance. Supplemental coverage is usually available for larger groups allowing employees to take additional coverage at their own expense.