Basic Employee Life
The primary life insurance benefit provided by the employer, typically set as a fixed amount or based on eligible earnings, up to the plan maximum.
Group Life Insurance
Financial protection for the people employees care about most.
Group life insurance gives employers a practical way to provide valuable protection for employees and their families, with coverage that can include Basic Employee Life, Optional Life and Dependent Life.
Employee Life · Dependent Life · Optional coverageEmployee life · Dependent life
Life insurance at a glance
Coverage that can include employees and their families.
Employee basic life
Coverage can be structured as a flat amount or as a multiple of eligible earnings, subject to plan maximums.
Coverage can be structured as a flat amount or as a multiple of eligible earnings, subject to plan maximums.
Dependent Life
Plans can also provide life insurance for an eligible spouse and dependent children, with benefit amounts defined by the contract.
Plans can also provide life insurance for an eligible spouse and dependent children, with benefit amounts defined by the contract.
Optional or supplemental employee life may be available
Evidence of insurability may apply above specified limits
Waiver-of-premium provisions may protect coverage during disability
Beneficiary designations and dependent eligibility should be kept current
Family protectionProvides financial support to an employee’s beneficiary if the insured employee dies while covered.
Dependent LifeCoverage can extend to an eligible spouse and dependent children under the employer plan.
Flexible plan designTailor benefit amounts, cost-sharing arrangements and coverage thresholds to suit the plan.
Independent adviceAssess how insurers differ in pricing, coverage limits, underwriting and contractual provisions.
What is group life insurance?
Coverage that helps ease the financial impact of loss.
Group life insurance is employer-sponsored coverage that pays a death benefit when an insured employee dies while eligible and covered under the plan. It is one of the most common core benefits in a Canadian group insurance program.
Employee coverage is often based on a flat dollar amount or a multiple of eligible earnings. Employers may also offer optional or supplemental life insurance so employees can purchase additional protection, subject to the insurer’s rules and underwriting requirements.
Dependent Life is a separate group benefit that can provide a benefit if an insured spouse or dependent child dies. Although the amounts are generally different from employee life coverage, the benefit can help with immediate financial pressures and time away from work following a family loss.
How it works
From plan design to claim payment.
The details that matter—benefit amounts, evidence requirements and continuation provisions—depend on the terms of the plan.
01
The plan takes shape
The employer defines the benefits to be provided, and employees join based on the applicable eligibility requirements.
02
The benefit amount is determined
Coverage may be a flat amount, a multiple of earnings, an employee-selected optional amount, or a combination, subject to plan maximums.
03
Beneficiary and dependent information is maintained
Employees should keep beneficiary designations and eligible dependent information current as personal circumstances change.
04
A claim is submitted
Required documentation is provided to the insurer, which reviews the circumstances and determines the benefit payable under the contract.
Optional / Supplemental Life
Employees may be able to purchase additional life insurance, often in specified increments. Evidence of insurability may be required based on the amount requested.
Dependent Life
Extends life insurance to an eligible spouse and dependent children, with benefit levels, eligibility definitions and termination ages determined by the applicable terms.
Accidental Death & Dismemberment
AD&D may be included alongside life insurance or offered separately. It can pay an additional benefit for covered accidental death or specified accidental losses.
Waiver of Premium
Waiver of Premium may allow life insurance to continue without premium payments when an employee satisfies the applicable disability requirements.
Conversion / Continuation Options
When group coverage ends, employees may have a limited period to convert eligible life insurance to an individual policy or access other continuation options without the usual medical underwriting.
Coverage note: Benefit limits, eligibility rules, underwriting, exclusions, waiver provisions, age-related changes and continuation rights can differ by insurer and plan.
Plan design
Good plan design balances employee needs, affordability and simplicity.
Employers can tailor life insurance to reflect their workforce, compensation structure and budget. A well-structured approach balances meaningful employee value with simplicity and flexibility.
01
Choose the core benefit amount
Decide whether basic employee life will be a flat amount, a multiple of earnings or another formula, and set an appropriate overall maximum.
02
Review evidence requirements
Life insurance may be available up to a specified amount without medical evidence. Higher amounts may require evidence of insurability.
03
Decide who pays the premium
Optional Life gives employees and spouses access to additional insurance, while allowing the employer to determine how much, if any, of the cost it will fund.
04
Consider spouse and child coverage
Select appropriate spouse and child benefit amounts and confirm the contract’s definitions of eligible dependants, age limits and continuation rules.
05
Compare contractual details
The long-term value of life insurance depends on more than the benefit amount, including provisions that apply during disability, as employees age and when coverage ends.
Independent comparison
What looks similar at first can differ meaningfully in practice.
Matching benefit amounts do not necessarily mean matching terms, particularly for underwriting, optional and dependent benefits, disability provisions and continuation.
We help employers compare the full contract and determine how employee life and Dependent Life fit with disability, critical illness and the broader benefits program.
What we compare
- Basic employee life benefit formula and maximums
- Non-evidence maximums and evidence-of-insurability requirements
- Employee and spouse Optional Life amounts and limits
- Dependent Life benefit amounts and eligibility definitions
- Waiver-of-premium provisions and disability requirements
- AD&D features, where included or offered
- Age reductions, termination ages and conversion or continuation rights
- Premium structure, rate guarantees and administration
Employee Life & Dependent Life
Different insured lives. Different financial needs.
Employee Life and Dependent Life address different financial needs and are typically designed as distinct parts of the overall program.
Employee Life Insurance
Protects the employee’s beneficiary if the insured employee dies while covered.
- Core coverage may be a flat amount or a multiple of earnings
- Optional employee life can increase the amount of protection
- Evidence of insurability may apply above specified limits
- A beneficiary is designated to receive the insured benefit
- Waiver-of-premium and conversion provisions can add important protection
Dependent Life Insurance
Provides a benefit if an eligible insured spouse or dependent child dies while covered.
- Spouse and child benefits are commonly set as specified dollar amounts
- Coverage may be employer-paid, employee-paid or offered as an option
- Spouse coverage may have different evidence requirements than child coverage
- Eligibility definitions and dependent age limits are set by the contract
- The benefit can help with immediate costs and time away from work after a family loss
Dependent Life note: Dependent Life is not simply an extension of the employee’s own life benefit. Spouse and child coverage amounts, eligibility definitions, evidence requirements and termination provisions are determined separately under the group contract.
Frequently asked questions
Group life insurance, explained.
The applicable policy should be reviewed to confirm the terms and conditions of the coverage.
What does group life insurance pay?
When an insured person dies while covered, the insurer reviews the claim and pays the applicable benefit in accordance with the group policy. The amount payable reflects the coverage in effect for that person.
How is basic employee life insurance usually structured?
Employers commonly use a flat dollar amount, a multiple of eligible earnings, or another defined formula, subject to maximum benefit limits.
What is Dependent Life insurance?
Dependent Life is group coverage for an eligible spouse and dependent children. It pays a specified benefit when an insured dependent dies, subject to the eligibility definitions and policy terms.
Does Dependent Life cover both spouses and children?
Often yes. Many group plans can provide separate spouse and child benefit amounts. Definitions of spouse, dependent child, student status and age limits vary by insurer and contract.
Is medical evidence required for group life insurance?
Not always. Group plans commonly provide coverage up to a non-evidence maximum without individual medical underwriting. Evidence of insurability may be required for higher amounts, late applicants or when additional life insurance is requested.
Can employees purchase additional life insurance?
Many plans offer optional or supplemental employee life and may also offer optional spouse life. Amounts, increments, pricing and underwriting requirements depend on the insurer and plan.
What is waiver of premium?
Waiver of premium is a provision that may continue eligible life insurance coverage without premium payments when an employee becomes totally disabled and satisfies the policy’s disability definition, waiting period and other requirements.
What happens to life insurance when an employee leaves the plan?
When eligibility ends, group life insurance typically ends as well. Employees may have a limited period to convert eligible coverage or access other continuation options, making timely communication important.
Review your options
Does your life insurance plan provide the right level of protection?
We can review employee basic life, optional coverage, Dependent Life, evidence limits and contract provisions, then compare available insurer options for your organization.