Why Employer Paid Life Insurance Is a Smart Move for Small Businesses

When you're running a small business, every dollar you spend on employee benefits needs to count. One benefit that's often overlooked but can deliver strong value? Employer-paid life insurance.

1. It’s More Affordable Than You Think
Group life insurance rates are typically lower than individual policies. Even modest coverage (like $25,000 or $50,000 per employee) can be a meaningful benefit without breaking your budget.

2. Boosts Your Benefits Appeal
Offering life insurance shows you care about your team beyond just their day-to-day work. It helps your benefits package stand out when competing for talent—especially when you can't match big-company salaries.

3. Supports Employee Peace of Mind
Life insurance offers financial protection to an employee's loved ones in the event of a tragedy. That peace of mind can translate to better focus and loyalty on the job. Employees also often seek out this benefit because it allows them to have life insurance without having to answer health questions or go through a medical exam.

4. Simple to Administer
Most employer-paid life insurance policies are easy to set up and manage.

5. Tax Advantages
Premiums for group term life insurance (usually up to $50,000 of coverage per employee) are generally tax-deductible for the business and tax-free for employees.

Small businesses don’t need a Fortune 500 budget to offer meaningful benefits. Employer-paid life insurance is a smart, affordable way to show your team they matter—and that you're building a workplace that looks out for them.