Skip to main content
Securian Financial Home

Group term life insurance

Simple, cost-effective protection for employees

Group term life insurance provides cost effective insurance protection for a specified period of time. Our most popular and affordable product, group term life insurance is available as an employer-provided benefit as well as an employee-paid benefit. 

See how we explain term life insurance to employees

Why offer group term life insurance?

  • Basic term life insurance offers employees foundational protection that helps meet minimum income needs in the event of a premature death. It can be an important tool to help families afford final expenses, such as funeral and medical bills, as well as day-to-day financial obligations.
  • Supplemental term life insurance allows employees to increase their individual protection, offering a cost-effective financial safety net, at no additional cost to employers.
  • Employees at all stages of life may have a need for life insurance, from single in their 20s to married couples with grown children.
  • Under the federal tax code, employer-paid coverage amounts up to $50,000 are generally income tax-free to employees. 

How group term life insurance works

Group term life insurance provides cost-effective insurance protection for a specified period of time. It provides a base level of protection alongside employees’ personal savings, individual life insurance and Social Security benefits. 

There is no cash value accumulation with term life insurance. 

The benefit is paid if the insured dies during that “term.” For group insurance, the “term” is considered the number of years the insured is employed. As with other life insurance, benefits paid to a beneficiary are generally income-tax free.

Coverage stops at the end of the term, or when the insured stop paying the premiums. If an employee retires or leaves their current employer, options for continuing coverage may be available. 

Additional features

Benefits that can be added to Securian’s group term life insurance policies include:

  • Guaranteed coverage options
  • Dependent coverage
  • Waiver of premium for disabled employees
  • Continuation options for employees who change jobs or retire, including portability and conversion 

Business travel accident (BTA)

Available as a rider to a term life policy or as an additional AD&D benefit, business travel accident coverage provides a lump-sum payment if an insured employee dies or is injured from a covered accident while traveling for business.

Get in touch with us

Learn more about offering group term life insurance from Securian.     

Contact sales today

Benefit Scout®

A decision-support experience, designed to educate employees about voluntary benefits offered through their employer. Engaging employees during their decision journey, Benefit Scout offers coverage suggestions to help employees understand which benefits best fit their needs before they enroll.

Review Benefit Scout

This information is a general discussion of the relevant federal tax laws provided to promote ideas that may benefit a taxpayer. It is not intended for, nor can it be used by, any taxpayer for the purpose of avoiding federal tax penalties. Taxpayers should seek the advice of their own advisors regarding any tax and legal issues specific to their situation.

DOFU 3-2024