Finding the Best Group Life Insurance for Florida Small Businesses

As a small business owner in Florida, providing quality benefits like health insurance helps attract and retain top talent. But group life insurance is another essential benefit your employees and their families depend on.

If a valued team member passes away, group life insurance pays a lump sum death benefit to their chosen beneficiaries. This protects loved ones from financial hardship during an already difficult time.

Yet with so many insurance carriers and options to choose from, how do you select the right group life policy for your small business?

This guide will cover:

  • Types of group life insurance
  • Florida life insurance carriers
  • Comparing policy features
  • Getting the best rates
  • Tips for choosing a plan

Follow these steps to find an affordable and comprehensive group life insurance plan for your Florida employees.

Types of Group Life Insurance

First, let’s review the main categories of group life insurance coverage:

Basic life – This covers all eligible employees and provides a fixed death benefit, typically equal to 1x or 2x the employee’s salary. The monthly premium cost is either fully paid by the employer or shared between the company and employees.

Supplemental life – Also called voluntary life, this optional coverage allows employees to purchase extra coverage beyond the basic death benefit. Employees pay 100% of the premiums through payroll deduction.

AD&D – Accidental death and dismemberment insurance pays if an employee dies or suffers dismemberment due to a covered accident. Many group life policies include basic AD&D coverage.

Dependent life – Employees can elect this additional coverage for spouses and children. The premiums are paid by the employee through payroll deduction.

Florida Small Business Life Insurance Carriers

There are dozens of insurance companies offering group life coverage to Florida small businesses. Some top options include:

  • Florida Blue
  • UnitedHealthcare
  • Aetna
  • Cigna
  • Mutual of Omaha
  • Principal Financial Group
  • Lincoln Financial Group

When comparing carriers, look for an insurer with strong financial ratings from agencies like AM Best. This indicates long-term stability to pay out claims.

Comparing Policy Features and Plan Design

Once you’ve narrowed down some potential life insurance providers, dig into the key policy details:

Available benefit amounts – Review options for basic and supplemental life coverage maximums to meet your needs. Many offer benefits up to $500,000 without any medical underwriting.

Rate structure – Insurers use one of two methods:

  • Attained age rates – Premiums increase as employees age.
  • Composite/unit rates – All employees pay the same rate regardless of age.

Waiver of premium – This continues life insurance coverage without premium payments if an employee becomes disabled.

Accelerated death benefit – Allows terminally ill employees to receive a partial benefit payout before death.

Conversion options – Lets employees convert group life coverage to an individual policy if they leave employment.

Portability – Employees can take their coverage with them when leaving the company.

Beneficiary support services – Some insurers provide grief counseling, funeral planning, and financial/legal services.

Make sure any carrier you’re considering provides robust options and support features like these.

Getting the Best Group Life Insurance Rates

As a small business, you want to balance robust coverage with affordable premiums. Here are some tips to get the lowest group life insurance rates:

Cover more employees – Insurers offer better rates for groups with higher participation. Aim for at least 60% of eligible employees to enroll.

Minimize underwriting – Simplified issue plans limit health questions up to benefit amounts like $100,000 to $250,000. This streamlines the process.

Leverage multi-policy discounts – Insurers offer discounts when you bundle group life with other policies like health, dental or disability.

Choose composite rates – All employees pay the same monthly premium, which is typically lower than attained age rates.

Pay part of the premium – Contributing even 25% of the basic life premium helps reduce costs for employees.

How to Choose the Right Group Life Insurance Plan

As you evaluate options, keep these tips in mind:

  • Work with an independent insurance broker who can quote multiple carriers.

  • Make sure the benefit maximums meet your needs.

  • Look for an insurer with strong financial ratings.

  • Review policy features like waiver of premium, portability, and beneficiary support services.

  • Aim for simplified underwriting with low participation requirements.

  • Seek composite rates to keep premiums affordable for all employees.

  • Consider contributing to the premium cost.

  • Bundle with other insurance plans to maximize discounts.

Protect your Florida employees and their loved ones with an affordable group life insurance plan paired with robust features. Comparing multiple carriers and plan designs ensures you make the best coverage selection for your small business.

Small Business Life Insurance Checklist


How many employees do you need for group life insurance?

(c) May a group include fewer than 10 employees? (1) As a general rule, life insurance provided to a group of employees cannot qualify as group-term life insurance for purposes of section 79 unless, at some time during the calendar year, it is provided to at least 10 full-time employees who are members of the group of …

What is the minimum number of lives required for a group policy in Florida?

Many states place minimum guidelines on the amount of participants required to be considered for group coverage (typically 50). Florida does not set such rules. There is no minimum number of members (lives) as long as the organization is one that is eligible for group life insurance in Florida.

Are Group Life policies in Florida required to contain a conversion privilege?

Group Life policies in Florida are required to contain a conversion privilege that allows for conversion? To an individual policy for a stated period of time. (In Florida, Group Life policies must contain a conversion privilege that allows for conversion to an individual policy for a specified period of time.)

Does Florida Blue offer life insurance?

Life Insurance > Through our affiliates, Florida Combined Life and USAble Life, we offer life insurance products with affordable premiums and flexible options designed to provide security and peace of mind.

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