Group Term Life and AD&D Insurance
Blue Shield of California Life & Health Insurance Company (Blue Shield Life) offers group term life insurance, accidental death and dismemberment (AD&D), and optional dependent life insurance, with or without a Blue Shield medical plan.
Group term life insurance benefits
For more than 50 years, Blue Shield Life has provided affordable, easy-to-understand life insurance plan designs. Term life insurance coverage can help designated beneficiaries meet the need to pay for expenses such as funeral costs, daily expenses or college tuition.
Group term life insurance benefits for Small Groups (2-100 employees) include:
- Flat amount – All employees are covered at the same flat amount, for example, $25,000.
- Multiple of salary – All employees are covered for the same multiple of salary up to a maximum amount of two times the annual earnings up to the maximum benefit amount, depending on group size.
- Graded schedule – Employees are divided into classes (up to four) that have different levels of benefits. The benefit amount for each class must be no more than 2.5 times that of the next lower class.
- Age reduction to 65% of the original amount at age 65; 50% of the original amount at age 70; all benefits terminate at retirement.
- Accelerated death benefit (ADB) is 50% of benefit, or $250,000, whichever is less.
- Higher benefit maximums for groups with 10 or more eligible employees.
- Group rating provides competitive rates and streamlined administration.
- Waiver of premium provision, for insured employees who are totally disabled before age 60.
Group term life insurance benefits for Large Groups (101+) include:
- Waiver of premium provision for continued life insurance of employees who are totally disabled before age 60.
- Accelerated death benefit (ADB) is 50% of benefit or $250,000, whichever is less.
- Guaranteed-issue amounts are set depending on overall group volume and basic benefit levels.
- Age reduction to 65% of the original amount at age 65; 50% of the original amount at age 70; All benefits terminate at retirement.
AD&D insurance benefits
Coverage that provides for individuals who suffer a qualifying bodily injury during an accident, depending on coverage amount and type of injury suffered:
- Accidental loss of life – 100% of principal sum (equal to the basic life amount)
- Partial benefits for accidental loss of limbs or paralysis
- Seat belt and airbags benefit
- Special education benefit
- Repatriation benefit
- Disappearance benefit
- Felonious assault benefit
- Exposure benefit
- Comatose benefit
- Common carrier benefit
- Surgical reattachment benefit
Dependent life insurance benefits (optional)
With group term life insurance, dependent life insurance is available for an insured employee's spouse, domestic partner and/or children. Coverage offered at $1,000 to $5,000, $7,500, $10,000, and $20,000. Maximum of 50% of employee amount, and spouse, domestic partner, and children benefit amount must match.
Supplemental term life insurance and AD&D insurance coverage (optional for groups with 101+ employees)
While basic term life may meet some employees’ financial protection needs, many need higher levels of life insurance when the basic plan does not provide adequate coverage levels for their household.
Supplemental term life insurance is a 100% employee-paid benefit that helps employees and their dependents gain extra protection to fit their personal insurance needs. While basic group term life insurance may meet some employees’ financial protection needs, others may need higher levels of life insurance.
Life insurance and accidental death and dismemberment (AD&D) insurance are integral parts of a comprehensive benefits package and are time-honored ways to help employees protect their families from the financial challenges that can arise from the death or disability of a loved one. Basic life insurance, underwritten by Blue Shield of California Life & Health Insurance Company (Blue Shield Life), is an affordable way for you to provide your employees with added security during uncertain economic times. Life insurance is available to groups with or without medical coverage.
Affordable, easy-to-understand life insurance plans
Complete your employees' benefits package with group term life insurance, AD&D and optional dependent coverage for better financial security. We also provide you with one bill if you decide to combine life insurance with a Blue Shield medical plan. To learn more about life insurance coverage and plan designs to fit your employees' needs, contact your broker or Blue Shield representative.
Already have an insurance policy with Blue Shield Life? Get the forms you need to enroll a new employee or submit a claim.