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Does anyone know of a carrier that will do 5x to 8x salary for a group of six? Preferably without underwriting? I'm probably dreaming 
5x to 8x Salary for Group Life
- Thread starter insurehound
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Depends on the size of the group.
I have worked on some very large cases in the past where 5x was available on a guaranteed issue basis. You need a lot of lives, and a lot of premium volume to get that request filled. Usually the carrier will cap the limit to something like $500k. Anything above that requires E of I.
I have worked on some very large cases in the past where 5x was available on a guaranteed issue basis. You need a lot of lives, and a lot of premium volume to get that request filled. Usually the carrier will cap the limit to something like $500k. Anything above that requires E of I.
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- 500
Thank you for your help.
This Group that I am working on has two companies. The first company has about 16 employees. Apparently, the original agent has gotten them two Group life policies. The first pays 5x the salary and the second pays 3x the salary. There is a cap on coverage of course.
So the employer wants to do the same for his second company which has 6 employees.
Is employing two Group Life policies and option that is done quite a bit?
This Group that I am working on has two companies. The first company has about 16 employees. Apparently, the original agent has gotten them two Group life policies. The first pays 5x the salary and the second pays 3x the salary. There is a cap on coverage of course.
So the employer wants to do the same for his second company which has 6 employees.
Is employing two Group Life policies and option that is done quite a bit?
Stacking is something that is usually not condoned, especially where GI limits are involved. Frankly, I haven't seen GI limits on 5x - 8x salary on a group of 16 lives or less since Manhattan Life was on drugs.
On 6 lives I would expect a cap of somewhere in the $50k range for non-med.
On 6 lives I would expect a cap of somewhere in the $50k range for non-med.
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Group insurance for over 50,000 is expensive for the employer and the employee compared to ind uw term.
rsli-moses
New Member
- 17
Why would cost be an issue for the employee on an employer paid group term life policy?
When I receive quote requests like this the reason is almost always that a key employee (or the most outspoken) in the group is unhealthy. The highest guarantee issue amount that I have seen on a group of this size is $50k. My company allows up to $150k with medical underwriting though. I recommend writing the highest amount that is guarantee issued and then selling individual term policies to those who want it. Voluntary/Supplement is almost impossible on a group like this unless you find a carrier that wants that kind of adverse risk (Fort Dearborn Life). But you should quote Reliance Standard, SunLife, and Unum will offer GI policies on groups of this size. I recommend Reliance Standard obviously.
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