What Happens to Your Employer Life Insurance Account When You Die
Quick Facts
Type
Group Life Insurance
Urgency
High — file claim promptly
Common Coverage
1-2x annual salary (basic); more with voluntary
Tax Treatment
Death benefit is generally income tax-free
Step-by-Step Guide
Contact employer HR about life insurance coverage
Ask HR to confirm all life insurance coverage: basic group life (employer-paid, typically 1-2x salary), voluntary/supplemental life (employee-paid additional coverage), and accidental death & dismemberment (AD&D) if applicable. Get the insurance carrier name and policy number.
Estimated time: Within 1 week
File claim with the insurance carrier
Contact the insurance carrier directly to file a death benefit claim. You will need the policy/group number, a certified death certificate, the beneficiary's identification, and a completed claim form. HR can often help initiate this.
File AD&D claim if applicable
If the death was accidental, file a separate Accidental Death & Dismemberment (AD&D) claim. AD&D pays in addition to the basic life insurance benefit. The insurance carrier will review the cause of death to determine eligibility.
Estimated time: 2-4 weeks
Receive and manage proceeds
Life insurance proceeds are typically paid within 30-60 days of claim approval. Benefits are generally income tax-free to the beneficiary. You can receive a lump sum or, with some carriers, choose an interest-bearing account option.
Estimated time: 30-60 days
Document Now Checklist
- Employer name
- Insurance carrier name
- Group policy number
- Basic coverage amount
- Voluntary/supplemental coverage amount
- AD&D coverage amount
- Beneficiary designations
Last verified: June 2026. Platform policies may change. Verify current procedures directly with Employer Life Insurance. This guide is for informational purposes only and does not constitute legal advice.
Related Guides
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Contact the deceased's employer HR department first — they coordinate most of these benefits and can provide contact information for each plan administrator.
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Contact the deceased's employer HR department first — they coordinate most of these benefits and can provide contact information for each plan administrator.
Paychex
Contact the deceased's employer HR department first — they coordinate most of these benefits and can provide contact information for each plan administrator.
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