Group Life Insurance Cost Calculator

Group life insurance is priced per $1,000 of coverage per month, with the rate driven mainly by the average age of the covered group rather than by any individual employee's health. This calculator sets coverage per employee as a multiple of average salary — 1x and 2x salary are the most common structures for employer-paid group plans — and multiplies that by the number of enrolled employees for total coverage. The monthly rate per $1,000 starts from a base figure representative of a group averaging around age 30 and scales upward as the average age climbs past 30, reflecting that mortality risk, and therefore group insurance pricing, rises with age.

Total Annual Cost is then split between employer and employee based on the contribution percentage you set — a 100% employer contribution means the benefit is fully employer-paid, while any lower percentage leaves the remainder to be collected through payroll deduction, shown as Employee Monthly Deduction. Because this uses a representative age-based rate curve rather than an actual insurer's underwritten rate table, real group quotes can differ meaningfully based on group health, industry classification, and the specific carrier — treat this as a planning estimate to compare against a broker's actual quote, not a substitute for one.