Attract and retain top talent with comprehensive life insurance benefits. Tax-deductible for your business, valuable for your employees, simple for your HR team.
Group life insurance is a single policy purchased by an employer that provides life insurance coverage to all eligible employees. The employer owns the master policy, and each covered employee receives a certificate of coverage confirming their individual benefit.
Coverage can be employer-paid (the company pays all premiums), voluntary (employees pay through payroll deduction), or a combination of both. Most companies offer a base level of employer-paid coverage and allow employees to purchase additional voluntary coverage.
Premiums are tax-deductible as a business expense. Simple single-bill administration. Powerful recruiting and retention tool in a competitive labor market.
Low-cost or free basic coverage with no medical exam required. Guaranteed acceptance during open enrollment. Payroll-deducted supplemental options.
One policy covers your entire workforce. No individual applications or underwriting for each employee.
Pooled risk means lower per-person rates than individual policies. The larger your group, the better the pricing.
During open enrollment, employees are automatically accepted up to the guaranteed issue amount with no health questions.
Employees who leave can port their coverage or convert to an individual policy, retaining protection without a new exam.
Premiums are fully deductible as a business expense. First $50K of coverage per employee is tax-free to them.
Life insurance consistently ranks among the top benefits employees value. It signals you care about their families.
Stand out in a tight labor market. Group life completes your benefits package alongside health and retirement plans.
One bill, one policy, one point of contact. Palmwood handles enrollment, changes, and claims support.
Basic group life is often provided at no cost to employees, giving them immediate financial protection.
Employees are covered without medical exams, blood tests, or health questionnaires during open enrollment.
During enrollment periods, every eligible employee is guaranteed coverage regardless of health status.
Coverage can be converted or ported to an individual policy if an employee leaves your company.
1–2x annual salary
Employer-PaidAdditional coverage above basic
Employee-PaidSpouse and child coverage
Employee-Paid| Plan Feature | Options Available | Notes |
|---|---|---|
| Coverage Multiples | 1x, 2x, 3x, 4x, 5x salary | Flat dollar amounts also available |
| AD&D Coverage | Included or separate rider | Accidental death & dismemberment at low add-on cost |
| Waiver of Premium | Included in most plans | Waives premiums if employee becomes disabled |
| Accelerated Death Benefit | Standard inclusion | Early payout for terminal illness diagnosis |
| Portability | Available on most plans | Employees keep coverage at group rates after leaving |
| Conversion Privilege | Standard | Convert to individual whole life without medical exam |
| Guaranteed Issue Amount | $100K–$250K typical | Higher amounts available for larger groups |
| Age Reduction Schedule | Customizable | Coverage may reduce at ages 65, 70 (or not at all) |
Palmwood designs group life plans for businesses of all types and sizes.
Affordable plans designed for growing companies. Simple setup and low minimum participation requirements.
Competitive multi-carrier bidding to find the best rates. Tiered coverage structures for different employee classes.
High guaranteed issue amounts for knowledge workers. Key person and partner coverage integration.
Plans that accommodate shift workers, part-time staff, and PRN employees with flexible eligibility rules.
AD&D-focused plans for higher-risk occupations. Portable coverage for project-based and seasonal workforces.
Premium benefits packages that help compete for talent. Flexible voluntary options for diverse, distributed teams.
We review your current benefits, employee census, budget, and goals to understand exactly what your team needs.
We shop your plan across multiple top-rated carriers to find the best combination of rates, benefits, and service.
We customize coverage tiers, rider selections, eligibility rules, and contribution structures tailored to your company.
We provide enrollment materials, host information sessions, and support your HR team through the entire enrollment process.
We handle billing questions, claims assistance, annual renewals, and employee changes year-round. One call to Palmwood solves it.
Typically $5–$15 per employee per month for basic coverage of 1x annual salary. Rates depend on average workforce age, industry, plan design, and group size. Larger groups generally receive better per-employee pricing.
Premiums are tax-deductible as a business expense. For employees, the first $50,000 of employer-paid coverage is tax-free. Coverage above $50,000 generates imputed income based on IRS Table I rates.
Under IRS Section 79, the first $50,000 of employer-paid group term life is tax-free to employees. Coverage above $50,000 generates imputed income. Many plans cap employer-paid coverage at $50,000 or 1x salary (whichever is less) to avoid this threshold.
Yes. Portability lets departing employees continue group coverage at group rates. Conversion lets them switch to an individual whole life policy without a medical exam. Both options must be elected within 31 days of leaving employment.
Most carriers require 2–5 eligible employees. Palmwood works with businesses as small as 5 employees. For very small groups (2–4), we may recommend individual policies with group-like features as an alternative.
No. During open enrollment, employees receive guaranteed issue coverage up to a specified amount ($100K–$250K) with no health questions. Coverage above that amount may require evidence of insurability.
Yes. You can establish different coverage tiers based on employee classification (executives, managers, staff). The classification must follow a non-discriminatory formula based on job duties, compensation, or tenure.
Accidental Death & Dismemberment provides an additional benefit for accident-related death or covered injuries. It is typically offered alongside group life at very low additional cost and is highly valued by employees.
Tell us about your business and we will design a group life plan tailored to your team and budget.