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Calcimator

Group Life Insurance Cost Calculator

Calculate the per-employee and total cost of employer-sponsored group life insurance benefits.

Inputs

$
x salary
%

Results

Monthly Cost per Employee

$10.63

≈ 2 cups of coffee

Total Annual Cost

$6,377.50

≈ 6 smartphones

Coverage per Employee$60,000.00
Annual Cost per Employee$127.55
Employer Annual Cost$6,377.50
Employee Monthly Deduction$0.00
Total Group Coverage$3,000,000.00
How to Use This Calculator
  1. Enter the number of employees in the group plan.
  2. Set the average annual salary and the coverage multiple (e.g., 1× or 2× salary).
  3. Input the insurer's rate per $1,000 of coverage (obtain from your benefits broker).
  4. Review the total annual group premium and cost per employee.
  5. Add supplemental voluntary life rates for employees who want additional coverage.

How the result changes with Average Employee Age

Average Employee AgeMonthly Cost per EmployeeTotal Annual Cost
25$9.00$5,400.00
36$10.06$6,034.91
49$14.96$8,977.78
61$21.43$12,856.35

What each input means

Number of Employees
Total number of employees enrolled in the group life plan.
Average Annual Salary
Average salary across enrolled employees. Coverage is typically a multiple of salary.
Coverage Multiple
Coverage as a multiple of salary. 1x and 2x are most common for group plans.
Average Employee Age
Average age of the employee group. Older groups have higher rates.
Employer Contribution
Percentage of premium paid by the employer. 100% means fully employer-paid.

How this is calculated

Worked example, using the default values

  1. Identify Input Parameters
    4 parameters
    Number of Employees = 50, Average Annual Salary = 60000, Coverage Multiple = 1, Average Employee Age = 38 = 5 input(s) provided
  2. Calculate Monthly Cost per Employee
    Monthly Cost per Employee
    10.63 = $10.63
  3. Calculate Total Annual Cost
    Total Annual Cost
    6377.5 = $6,377.5
  4. Calculate Coverage per Employee
    Coverage per Employee
    60000 = $60,000
  5. Calculate Annual Cost per Employee
    Annual Cost per Employee
    127.55 = $127.55

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