Compare Life Insurance Companies That Offer Payroll Deductions (2022)

If you have a full-time job that offers benefits—such as retirements investments, health insurance, and life insurance—you may be curious to learn more about life insurance companies that have payroll deductions.

Many life insurance companies in the U.S. offer payroll deductions. Typically, these companies work together with an employer to make this benefit an option for any employees who are eligible for any full-time benefits the company offers.

The most common way to take part in a payroll deduction life insurance plan is to do so through your job. Since there are countless life insurance companies that offer payroll deductions, you should ask your employer if there’s already a company in place for you to use.

Usually, it will be a group term life insurance policy rather than a whole life insurance policy. We’ll cover everything you need to know about how group life insurance with payroll deductions works below.

To compare what’s available from your employer to other life insurance options, shop around online to find life insurance rates that factor in payroll deductions to see how much you’d have taken out of your paycheck every month.

If you are looking for affordable life insurance using payroll deductions, be sure to use our free tool above to get started in your search today.

What are the best life insurance companies that offer payroll deductions?

It’s up to you to decide which life insurance company works best for you and your needs. But you should have a lot of options if your biggest concern is simply finding a company that uses payroll deductions to pay your monthly life insurance premium.

Of the U.S. companies that offer life insurance with payroll deductions, some of the most popular options include:

• AFLAC
• American Heritage
• American Amicable
• American Income Life
• Central United Life
• Colonial Life & Accident
• Dearborn National
• Fidelity Securities
• Liberty Life
• Liberty Mutual
• Madison National
• Mutual of Omaha
• National Teachers Associates
• New England Mutual
• New York Life
• Ozark National
• Prudential
• Southland National
• Transamerica Life
• Trustmark Life
• United Teachers Association
• Washington National

This list is not exhaustive, so there may be another company you wish to purchase a policy with that will allow you to do so using payroll deductions.

Not every company is allowed to offer coverage in each of the 50 states, so you’ll need to do some research to be sure the life insurance company you want can actually offer you a policy. Bear in mind that if the life insurance is through work, you will probably not be able to choose the company. Your employer will make that choice.

There are also plenty of life insurance companies that don’t have payroll deductions. You can speak to a financial advisor if payroll deductions are so important to you that you’d choose a life insurance company based on that option.

How can I get life insurance with payroll deductions?

As stated before, the easiest way to find a life insurance policy that will offer payroll deductions is through your work. If your employer partners with a life insurance company to offer payroll deductions, you will be offered this option as part of your benefits package.

There may be a meeting with the life insurance company, but more likely, you will receive a benefits package with the details. How much is deducted from your paycheck will depend on the amount of coverage you choose to purchase.

Some employers will cover a certain amount of life insurance for you as a workplace benefit. You can then choose to purchase additional coverage at a set rate for each unit of coverage you buy. For example, the rate may be for every $10,000 in coverage you add. This amount will be deducted pre-tax from your paycheck.

If you want to have your paycheck deductions explained to you before you commit to a group term life plan through your employer, you can speak to someone in the accounting department or with someone directly from the life insurance company.

Should I purchase a life insurance policy with payroll deductions?

Purchasing a life insurance policy with payroll deductions makes sense, as long as the policy is the type and amount you actually want.

If you find that your life insurance policy options are limited because of the company your employer has chosen or because of the group plan your employer is enrolled in, you may want to seek out other options to make sure you’re actually getting the type of policy you want and need.

In fact, before you purchase a policy through work, be sure to use our free tool below to find life insurance quotes with payroll deductions.