_OH_Group Life Insurance

Course Description:
Group life insurance has become the primary—and often the only—source of life insurance protection for many people today. Employers commonly provide life insurance to employees at no cost, and many employees choose to supplement this basic coverage with supplemental group term life insurance.

This course examines the reasons why employers and other groups offer life insurance as well as the different components of a group plan, including eligibility requirements, benefit maximums, premiums, and dependent coverage. It also explores important life insurance concepts that are common to all types of group life insurance plans, such as beneficiary designations, settlement options, and taxation issues. While the course focuses on group term life insurance—which is the most common type of group life insurance—it also discusses the characteristics of group whole life and universal life insurance, two additional types of coverage that may be offered by group sponsors.

The course includes the following chapters:

  • Overview of Group Life Insurance
  • Group Term Life Insurance
  • Additional Group Life Insurance Provisions and Coverage
  • Taxation of Group Term Life Insurance
  • Group Permanent Life Insurance

Course Objectives:
This is an intermediate-level course. Upon completion, students will be able to:

  • identify the common characteristics of group life insurance plans
  • describe the advantages and disadvantages of group life insurance to both employers and employees
  • understand group term life insurance plans’ eligibility requirements, benefit schedules, conversion rights, and portability provisions
  • understand why employers offer supplemental group term life insurance
  • describe the types of ancillary benefits that group life insurance plans may offer, including accelerated benefits and accidental death and dismemberment provisions
  • identify the requirements a group term life insurance plan must meet to qualify for tax benefits under Internal Revenue Code § 79
  • explain the tax treatment of group term life insurance to employers and plan participants
  • understand why employers offer group carve-out plans
  • describe the characteristics of group permanent life insurance policies, including portability, lower premiums, tax deferral, and favorable tax treatment of death benefits
  • compare and contrast group whole life insurance with group universal life insurance plans

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