In a noncontributory group term life plan, which party pays the premiums?

In a noncontributory group term life plan, which party pays the premiums?

• A. Employer
• B. Employee
• C. Insurer
• D. Both employer and employee

Answer: (A)

In a noncontributory group term life plan, the employer funds the entire premium for eligible employees, and employees don’t pay any part of the cost. This setup contrasts with contributory plans, where employees share in the premium. So the employer is the payer in a noncontributory arrangement.

In a noncontributory group term life plan, the employer funds the entire premium for eligible employees, and employees don’t pay any part of the cost. This setup contrasts with contributory plans, where employees share in the premium. So the employer is the payer in a noncontributory arrangement.