Jeffrey Manola is an experienced life insurance agent and the founder of Top Quote Life Insurance. His mission when he created Top Quote Life Insurance was to provide online consumers searching for life insurance with the absolute best quotes for term life insurance, permanent life insurance, no medical exam life insurance, and burial insurance. Not only does he strive to provide you with the ...

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Written by Jeffrey Manola
Founder & Licensed Agent Jeffrey Manola

Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products including home, life, auto, and commercial and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, largely in the insur...

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Reviewed by Leslie Kasperowicz
Farmers CSR for 4 Years Leslie Kasperowicz

UPDATED: Jun 30, 2022

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Advertiser Disclosure: We strive to help you make confident life insurance decisions. Comparison shopping should be easy. We are not affiliated with any one life insurance provider and cannot guarantee quotes from any single provider.

Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different life insurance companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about life insurance. Our goal is to be an objective, third-party resource for everything life insurance-related. We update our site regularly, and all content is reviewed by life insurance experts.

Facts You Should Know

  • 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.

Average Life Insurance Rates for Non-Smokers
Insurance CompanyAverage rates for a single 25-year-old femaleAverage rates for a single 25-year-old maleAverage rates for a married 35-year-old femaleAverage rates for a married 35-year-old maleAverage rates for a married 45-year-old femaleAverage rates for a married 45-year-old maleAverage rates for a married 55-year-old femaleAverage rates for a married 55-year-old maleAverage rates for a married 65-year-old femaleAverage rates for a married 65-year-old male
John Hancock$172.50$178.30$178.30$189.80$241.50$292.10$407.10$533.60$937.30$1,380.00
Lincoln National$187.00$231.00$191.00$238.00$239.00$283.00$435.00$615.00$903.00$1,577.00
New York Life$158$152$164$160$262$245$414$696$924$1,416
Prudential Financial$195.00$237.00$196.00$248.00$314.00$378.00$496.00$584.00$941.00$1,412.00
State Farm$143.00$164.00$166.00$175.00$238.00$239.00$341.00$396.00$684.00$955.00
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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.