Group Voluntary Supplemental Life Insurance

Group voluntary supplemental life insurance allows employees to purchase additional life insurance coverage on top of any basic employer-provided life benefit. Employees choose how much coverage they want, elect it during open enrollment, and pay the premiums through payroll deduction.

Because the coverage is purchased through a group, employees access rates that are significantly lower than what they could obtain through an individual policy. There is no medical underwriting required up to guaranteed issue limits, making it accessible to employees who might not qualify for individual coverage on their own.

The employer’s role is to make the benefit available and facilitate payroll deduction. The direct cost of the coverage falls entirely on the employee, making voluntary supplemental life insurance one of the most cost-effective ways to expand your benefits package.

Financial planning experts generally recommend life insurance coverage of seven to ten times an individual’s annual income. Most employer-paid basic life insurance policies provide one to two times salary, leaving a significant gap for employees who have dependents, mortgages, or other financial obligations.

Voluntary supplemental life insurance gives employees a convenient and affordable way to close that gap without requiring them to seek individual coverage on their own. The combination of group rates, guaranteed issue provisions, and payroll deduction makes it the easiest and most accessible way for employees to get the coverage their families need.

Offering this benefit demonstrates that your organization takes its employees’ financial wellbeing seriously, which strengthens loyalty and increases the perceived value of your total compensation package.