A small business owner, age 40, has five employees and a group benefits plan covering extended health and dental. They are considering adding life insurance for employees. What is a key advantage for the business of offering group life insurance compared to employees purchasing individual policies?

Question: A small business owner, age 40, has five employees and a group benefits plan covering extended health and dental. They are considering adding life insurance for employees. What is a key advantage for the business of offering group life insurance compared to employees purchasing individual policies?

Answer options:

• Group life insurance is always portable for employees if they leave the company. ✅ Employees can generally obtain coverage without medical underwriting, up to certain limits.
• Group life insurance always offers higher coverage amounts than individual policies.
• Group life insurance offers a wider range of riders and customization options.

Correct answer: Employees can generally obtain coverage without medical underwriting, up to certain limits.

Explanation: A key advantage of group life insurance for employees is that they can generally obtain coverage without individual medical underwriting, up to certain non-evidence limits. This makes it easier for employees, especially those with pre-existing conditions, to secure life insurance that might otherwise be difficult or more expensive to get individually.