Your business matters Protect my employees Group insurance Group life insurance

Group life insurance

Help protect your employees and their families with life insurance.

Many employers offering employee benefits consider group term life insurance an essential part of their benefits package. Why? It provides employees with a basic level of protection. Plus, adding voluntary term life insurance to your benefits package allows employees to purchase additional coverage for themselves and coverage for their dependents.

Who pays the insurance premium?

You can choose to pay for all, part, or none of the premium with Principal life insurance. If your budget is tight, employees could pick up the entire cost of premium with voluntary term life insurance.

What is life insurance?

When employees have life insurance, it helps them financially protect their loved ones if the unthinkable should happen. Life insurance provides a payment, also known as a death benefit, to beneficiaries after the insured person’s death.

Why offer group life insurance?

No matter what stage of life your employees are in, they appreciate having life insurance to protect their loved ones. In fact, life insurance is an important part of many families' long-term financial plan.

Plus, offering group life insurance enhances your benefits package. And great employee benefits can help you attract and keep quality employees.

How does group life insurance work?

Life insurance helps your employees put the people in their lives first. If an employee passed away, the life insurance proceeds would go to the people designated as beneficiaries. Those funds can help loved ones manage financial obligations, such as: funeral expenses, mortgage or rent, college funding, daily living expenses, and more.

Key features of Principal group life insurance.

When you combine group term life (employer-paid) and voluntary term life (employee-paid) coverage, you offer an even broader range of protection for employees. Best of all, your employees have guaranteed coverage—meaning they can get up to a certain amount of life insurance without answering medical questions.

Our flexible life insurance lets you customize a package just right for your company. Here are a few highlights of our coverage.

Group term life (employer-paid) Voluntary term life
Employee benefits
Flat benefits, percentage of salary or combination. Increments or percentage of salary
Coverage amounts
Up to $1 million.(1) Up to $500,000.
Optional dependent coverage

Flat benefits for spouse and children up to age 26.

Flat benefits for spouse (up to $250,000) and children up to age 26 (up to $25,000).

Continuing coverage if employment ends

Conversion (change coverage to individual life policy) available.

Conversion (change coverage to individual life policy) available.

Portability (extend coverage to another group term life policy) available.

Understanding group life insurance terms

Flat benefits

Coverage is a set amount. For example, a flat $20,000 is a life insurance benefit of $20,000.

Percentage of salary

Coverage is a percentage of the employee’s salary. For example, an employee has a life insurance policy that is twice (or 200%) their salary. Their salary is $50,000, which means a life insurance benefit of $100,000.


Choose from a flat dollar amount and let employees elect a benefit that fits their needs and their budget by selecting a benefit that is a multiple of that dollar amount. For example, if you select a $20,000 increment, employees could purchase $20,000; $40,000; $60,000, etc.

Accidental Death & Dismemberment (AD&D)(2)

It’s no surprise. People have accidents every day. And, unfortunately, some of them are severe. Adding Accidental Death & Dismemberment coverage to group term life or voluntary term life provides your employees with even greater protection. A core benefit is paid for the loss of life, hands, feet, thumb and index finger, and vision as the result of an accident.

Extra features(3) —at no extra cost to you

Some of our group life insurance policies give employees access to extra services.

  • Travel assistance: Helps employees ease some of the worries of traveling - whether in the U.S. or internationally.
  • Will and legal document center: Lets employees create simple legal documents online.
  • Identity theft kit: Allows employees to be proactive in protecting one of their most important assets—their identify.
  • Beneficiary support: Helps those coping with the death of a loved one.
  • Emotional health support line: Provides free access to licensed behavioral health clinicians who can provide emotional support, tips for healthy coping, and referrals to local resources.

Build upon your benefits package.

Talk to your financial professional about offering group life insurance. And, consider combining group life insurance with group disability insurance to offer a more comprehensive benefits package.

Compare your benefits

See how your benefits compare to what other organizations of your size, industry, and region offer their employees.


  1. Varies by case size and requires underwriting approval.

  2. In some states, certain provisions listed as AD&D may be paid as a personal loss benefit.

  3. These products and services are not part of the insurance contract and may be changed or discontinued at any time. Principal is not liable for products and services provided by third parties. Not available with group policies issued in New York.


This is an overview of the benefits group life insurance provides, but there are limitations and exclusions. For cost and coverage details, contact your Principal representative. Guarantees are based on the claims-paying ability of Principal Life Insurance Company®. Insurance issued by Principal Life Insurance Company®, a member of the Principal Financial Group®, Des Moines, IA 50392. Oregon Policy GC 6000 (06/04) and GC 6000 (VTL) (06/04).