Employer paid vs voluntary group life insurance in North Carolina

What’s the difference?

Employer paid life insurance is a core benefit funded by the company, while voluntary life is an optional add-on that employees can purchase through payroll. Offering both creates a safety net for every employee, and a path to add coverage as needs change. Security Plus Inc. helps Charlotte and Lake Norman employers decide on amounts, participation rules and waiting periods that match their policy goals.

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How employer paid life works

Basic life is often a flat 25,000 or 50,000 dollars or a multiple of salary. Carriers usually provide a guaranteed issue amount when employees are first eligible, which keeps enrollment simple. If the employer funds the full premium, carriers may require all eligible employees to be included. Security Plus Inc. confirms minimums and sets clear beneficiary procedures so records stay accurate through new hire onboarding.

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How voluntary life coverage fits your team

Voluntary life lets employees choose higher amounts and add spouse or child coverage. Premiums are usually age banded and paid by employees through payroll. If employees decline at first eligibility and want to enroll later, carriers may require health questions. Employers appreciate that this option adds value without adding cost to the company budget.

Cost, tax and communication tips

Many small employers cap employer paid coverage at 50,000 dollars to avoid taxable imputed income for employees. Voluntary life is typically paid with after tax dollars so benefits remain tax free to beneficiaries. Communicate age band changes up front and provide clear comparisons during enrollment so employees understand choices. Security Plus Inc. supplies simple summaries and helps your Charlotte or Cornelius team complete forms correctly.

Quick answers for plan design

  • Can we offer voluntary life without basic?

    Some carriers allow it, subject to participation. Many employers still provide a small basic amount to keep enrollment smooth.

  • Will rates increase as employees age?

    Group life premiums typically change when employees reach new age bands. We map those bands during your meeting so there are no surprises.

  • Can employees continue coverage after employment ends?

    Most plans allow portability or conversion within a limited time. We include instructions in offboarding packets and answer employee questions.

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