One of the biggest benefits to this form of life insurance is that the company in question pays most of the cost, and in some cases, the entire cost. Any plan that does not require the employee to contribute provides an un-taxable benefit up to a maximum of $50,000 dollars. Anything over this amount will be taxed by the IRS. Since a group of people are being insured under one blanket policy, the cost per individual tends to be reasonably low for the employer. Payments regarding this type of policy are also convenient for the employee. There is no need to write any cheques because the cost will almost always be deducted from your pay, assuming the employer is not paying the entire cost.