January 1, 2010

Q:  Is there a maximum amount of group life insurance I can have?

A: There are no maximum limits per se, but there are some practical points to consider. First, the tax laws provide that all amounts up to $50,000 are a deductible expense for the employer and tax-free to the employee. That means no paperwork is required for either the employer or the employee so for this reason many group life insurance policies set the amount of coverage at $50,000.

Second, the maximum amount of coverage available online for immediate enrollment without any medical test is $250,000. This is offered by Guarantee Trust Life. If you are between jobs and wish to provide interim coverage, this amount is typically the most popular choice.



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