To keep employees as your business grows, it is not uncommon for a business to first start offering employees life insurance. Group life insurance is much cheaper than individual life insurance, and can even be used in addition to someone's own life insurance policy. What's within your budget has a lot to do with what you can offer your employees but choosing the most attractive plan you can afford will keep your employees happy.

There are no medical exams required for group life insurance. The policy is usually a term insurance policy, but whole life or universal policies can be purchased for a premium as well. The cost is normally paid in full by the employer, although there are a small amount of companies that will charge something. There are companies that will also let the employee buy extra coverage for themselves, which enables the employee to pay a cheaper price being under a group plan.

The amount of coverage can either be determined by a percentage of the employee's salary or a fixed dollar amount. Most companies buying group life insurance choose the employee's salary alternative, but there are a number of businesses that use the fixed dollar method as well. Choosing the right one for your company is sometimes not easy, but just be sure it is something affordable for you and your business.

The Bureau of Labor Statistics, or BLS, says that 56 percent of all workers with fixed group life insurance policies are covered for one times their salary as a death benefit. Under a flat dollar amount plan, the highest group was the $10,000 to $20,000 life insurance coverage at 45 percent.

There are several factors upon which your group life insurance rates will be established. The male to female ratio, your employees average age, the size of your company and what industry your business is in will all be used to determine group life insurance premiums. The average face amount of a group life policy recently was $67,000 with the employer paying $145 per month.

Just like you should do with a personal life insurance policy, a group policy should be looked at yearly to be sure it is still the best policy for you. Remind your employees that they can add insurance to their policies if needed and they will appreciate the coverage you provide even more. Get your free quotes soon if you don't have a plan for your employee's, or even if you just want to find a better price.