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Getting Started
A type of life insurance provided to a group, most commonly by an employer as part of a benefits package
GTL
Group Term Life Insurance (often shortened to GTL) is a type of life insurance policy offered to a group of people under a single contract — most commonly by employers, associations, or organizations. Rather than purchasing individual life insurance, members of the group receive coverage as part of a benefits package.
This form of coverage provides a death benefit to beneficiaries if a covered individual passes away during the policy term.
how it works
Group Coverage: A single policy covers an entire group (e.g., employees).
Term Protection: Coverage is active for a specified term, typically while a person remains in the group or employed.
Employer-Sponsored: Many employers pay all or part of the premium on behalf of employees.
Simple Enrollment: Often no medical exam is required for basic coverage.
Research
Because risk is spread across the whole group, premiums are typically lower per person compared to individual life insurance.
Employers often cover the full cost of basic group term life insurance, making it a valuable benefit.
Most people qualify without medical underwriting, making it accessible for those who might otherwise have difficulty obtaining individual coverage.
Many plans allow employees to purchase additional voluntary coverage beyond the employer-paid amount.
Taxes
Under U.S. tax rules, the IRS allows the first $50,000 of employer-provided GTL coverage to be tax-free to the employee. Any coverage amount above that may be considered taxable imputed income and reflected in payroll records. *
Consideration
Group Term Life Insurance is a great foundational benefit for:
Employees seeking basic life coverage
Individuals who want affordable protection without strict medical underwriting
People who already have individual life insurance and want added benefits
It’s especially helpful for those wanting straightforward coverage while employed without purchasing a separate life policy.
LIMITATIONS
Coverage ends when you leave the group: If you change jobs or leave the organization, your coverage typically ends.
Limited individual control: You don’t own the policy — the employer is the policyholder.
May not be enough alone: For long-term financial planning, many people pair GTL with individual life insurance.
GTL FAQ's
In most plans, no — but many insurers offer conversion options to individual policies at your own cost.
Basic coverage provided by an employer is often automatic, but additional or voluntary coverage is usually optional.
In most cases, the employer pays all or part of the premium for basic coverage. Employees may choose to pay for additional voluntary coverage.
Basic group term insurance usually does not require a medical exam. However, higher coverage amounts may require medical underwriting.
Many group term plans offer optional coverage for spouses and dependent children at an additional cost.
Richardson Benefits Group is a privately owned small business and is not endorsed by the U.S. Government or associated with any federal Medicare program. We do not offer every plan available in your area.We do not offer every plan available in your area. Currently we represent 10 organizations which offer 58 products in your area. Please contact Medicare.gov, 1-800-MEDICARE, or your local State Health Insurance Program (SHIP) to get information on all of your options.
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