Identifying the False Statement About Non‑Contributory Employee Group Life Insurance

False Statement Clarified

The statement that employees must contribute premiums for non‑contributory employee group life insurance is false. Non‑contributory plans are fully paid by the employer, so no payroll deduction is required from the employee.

Key Characteristics of Non‑Contributory Group Life Insurance

These plans provide a death benefit to a designated beneficiary at no cost to the employee. The employer funds the entire premium, often offering a set amount—commonly one to two times the employee's annual salary.

Common Misconceptions

Some employers offer both contributory and non‑contributory options, leading to confusion. When a plan is labeled "non‑contributory," any suggestion that the employee pays a share is inaccurate.

Benefits to Employees

Since the cost is covered, employees receive immediate coverage without enrollment paperwork or financial commitment, making it an attractive perk for recruitment and retention.

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