Which group of life insurance plans requires 76% participation for employer contributions?

The key aspect of contributory life insurance plans is that they require employees to participate in order for the employer to provide any form of contribution towards the premium. In Georgia, as per the regulations regarding contributory plans, a minimum of 76% participation among eligible employees is typically required for the employer to make contributions. This structure encourages employee investment in the plan, as those who choose not to participate do not influence the employer’s overall contribution.

In contrast, non-contributory plans do not require any employee contributions, as the employer fully funds the premiums unconditionally. Voluntary plans are optional for employees and are typically funded solely by the employees without employer contribution requirements, while term life insurance refers to a specific type of coverage rather than a framework for participation or contribution.