Group life insurance offered by an employer is a single contract between the insurer and employer where each employee covered by the policy will receive a certificate of creditable coverage. Group policies are often far less expensive than if an individual were to purchase a policy on their own, and it is for this reason that most employers choose to cover the cost as part of a complete benefit package.
Typical coverage amounts are $25k, $50, $100k, or 1-2x an employee’s salary. In most cases the smaller issued amounts are guaranteed issue and do not need evidence of insurability. If an employee wishes to purchase an additional amount on top, they will be subject to a paramedical exam to help determine their rating status.