Top Life Insurance Company That Deducts from Payroll in 2021
Life insurance companies that have payroll deductions offer group life insurance through your employer. Although you can get cheaper group rates from life insurance companies that have payroll deductions, the coverage amounts and rates will usually not transfer if you move jobs. Many employers will pay for a certain amount of insurance for the employee, and then the employee can raise limits and add family members as needed.
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UPDATED: Nov 3, 2021
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- Many of the top life insurance companies offer group life insurance
- Employers offer life insurance to employees at a discounted rate and usually pay for up to $50,000 of coverage
- Additional coverage can be added for the employee and family members with the cost deducted from payroll
Many employers offer competitive benefits packages to gain and keep employees. This often includes group life insurance provided by some of the best life insurance companies out there.
Life insurance companies that have payroll deductions offer group insurance packages with discounted rates for employees.
There are downsides to tying your life insurance coverage to your job. However, affordable life insurance companies that have payroll deductions will also offer individual coverage not related to your employer.
Enter your ZIP code now to compare free quotes from life insurance companies that have payroll deductions in your area.
What life insurance companies have payroll deductions?
Employers are finding it harder and harder to find and keep employees. In addition to salary, many employees take into consideration the benefits a company can offer.
Many employers offer group term life insurance as a job perk. The employer usually pays for a limited amount of life insurance for the employee, and then the employee can add additional coverage for themselves or their family.
This additional coverage is then deducted from their pay. Paycheck deductions are explained as wages that are taken out of your pay before you receive your check.
Payroll deduction is very common and can be done pre-tax in some cases. Other payroll deduction examples include health insurance and 401k.
Many of the top life insurance companies offer group coverage with payroll deductions, including Erie, Cincinnati Life, and New York Life.
This table shows average life insurance rates for non-smokers from some of the top companies. These rates will give you an idea of the rates offered by life insurance companies that offer payroll deductions.
|Insurance Company||Average rates for a single 25-year-old female||Average rates for a single 25-year-old male||Average rates for a married 35-year-old female||Average rates for a married 35-year-old male||Average rates for a married 45-year-old female||Average rates for a married 45-year-old male||Average rates for a married 55-year-old female||Average rates for a married 55-year-old male||Average rates for a married 65-year-old female||Average rates for a married 65-year-old male|
|New York Life||$158||$152||$164||$160||$262||$245||$414||$696||$924||$1,416|
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Most employers will provide up to $50,000 in life insurance for employees.
According to the IRS, imputed income life insurance costs that are over $50,000 and paid by your employer must be considered income and are taxable.
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What are the pros and cons of group life insurance?
Group life insurance is often considered a job perk. However, there are some drawbacks to depending on your group coverage to meet all of your needs.
Pros of group life insurance include:
- Up to $50,000 in coverage is paid for by your employer
- Additional coverage for you or your family is offered at discounted rates
- It’s convenient to add coverage to a policy already in place
- Payroll deductions mean you don’t have to think about making payments yourself
- Coverage is usually guaranteed, with no medical exams needed
Cons of group life insurance include:
- You may not be able to take your policy with you when you change jobs
- If you can transport your policy, your rates and coverages may change
- Plans may offer limited amounts of coverage and customization for your policy
Life insurance companies that don’t have payroll deductions allow you to make your payment in other ways, such as through your bank account or with a credit card.
Life Insurance Companies That have Payroll Deductions: The Bottom Line
Most life insurance companies offer payroll deduction for your group insurance offered through your employer.
Although you may get lower rates for group life insurance, you may not be able to transfer your coverage if you change jobs.
Consider adding a personal life insurance policy that isn’t tied to your job in addition to the coverage offered by your employer.
Compare rates from life insurance companies that have payroll deductions for free by entering your ZIP code now.