Group Life Insurance

[Guest ccharper]

Our company has a group life insurance policy for its employees with a $50,000 cap. During our renewal, we went below 10 employees. The insurance company is denying coverage to one employee, they want complete medical histories for a couple more and one employee wants to waive but the insurance company won't let him. Can we do individual policies with the Employer paying the premiums and still have the first $50,000 tax free?

Thanks!

[GBurns]

The cost of individual policies would be very much higher and all employees could be subject to full medical underwriting. So you would have to do quite a bit of shopping around to find a Guaranteed Issue provider of small face amount term policies.

Maybe you should find out why you only had less than 10 enrollees. It might be cheaper to subsidize the premiums in order to get up to or over 10, if that is the GI criteria. If however, the less than 10 is because you do not have more than 10 employees, you should change insurance companies. You should also change your Broker/Agent, this is a simple problem that he should have handled in 1 day.

Guarantee Life, Boston Mutual and Transamerica might be alternatives woth looking into.

[Guest ccharper]

Thanks GBurns! We only have 9 ees. I'll look into the companies you suggested.