Business Insurance — Essential coverage

Group Life and AD&D Insurance for Maryland Employers

One of the most effective employee benefits available to small and mid-sized businesses in Maryland costs a few dollars per employee per month. Group life and AD&D insurance gives your team a meaningful financial protection benefit — and gives you a concrete recruiting and retention advantage that doesn't require raising every salary on your payroll.

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Two Protections, One Benefit — Here's How They Work

Group life insurance and accidental death and dismemberment coverage are typically bundled together in a single employer-sponsored program, but they do different things. Understanding the distinction makes it easier to explain the benefit to your team.

 

  • Group life insurance pays a death benefit to an employee's beneficiary for any cause of death — illness, accident, or otherwise. The standard benefit level is one to two times the employee's annual salary.
  • AD&D insurance pays an additional benefit on top of the group life amount if the death is caused by a covered accident. It also pays partial benefits for covered dismemberment — loss of a limb, sight, or hearing — regardless of whether the employee survives.
  • Bundled cost means employers typically receive both protections for a combined premium, not two separate line items.

 

The clearest way to put it: group life covers any cause of death; AD&D adds a layer of protection specifically for accidents. Together, they provide broader coverage for essentially the same cost as offering life insurance alone.

What Does Group Life and AD&D Actually Cost a Maryland Employer?

The numbers here are one of the strongest arguments for adding this benefit. A $50,000 group life policy with bundled AD&D coverage typically costs an employer between $3 and $8 per employee per month — a figure that holds across most small and mid-sized Maryland businesses regardless of industry.

 

For a team of 10 employees, that's roughly $30–$80 per month total. For a team of 25, it's $75–$200 per month. At that cost, group life and AD&D insurance is one of the few employee benefits that delivers a tangible, meaningful impact on recruitment and retention without a significant line item in your operating budget. It also signals to your employees that you've thought about their families — not just their paychecks.

Competing for Employees Without Competing on Salary Alone

Maryland employers in healthcare, defense contracting, technology, and professional services face real competition for qualified employees. Candidates evaluate the full picture of a compensation package — and a benefits gap can cost you a hire even when your salary offer is strong.

 

Group life and AD&D insurance is a standard expectation at larger employers. Offering it as a small or mid-sized business puts you on equal footing in that specific conversation. It's a benefit employees recognize, understand, and value — because it protects their families, not just their careers. And because the employer cost is low relative to the perceived value, it delivers an outsized return as a retention tool compared to most other benefits options.

How We Set Up and Manage Your Group Life and AD&D Program

You don't need a dedicated HR department or benefits administrator to offer group life and AD&D insurance. We handle the carrier selection, program design, and enrollment logistics. Your role is to decide on the benefit level and whether you want to offer voluntary supplemental life as an optional add-on.

 

Here's what the process looks like:

 

  • Carrier selection: We work with multiple top-rated carriers to find a program that fits your employee count, industry, and benefit goals.
  • Benefit level decision: Most employers choose one or two times annual salary as the base group life benefit. We'll walk you through the tradeoffs so you can make the right call for your team.
  • Voluntary supplemental life: Employees can often purchase additional coverage for themselves or their dependents through payroll deduction at group rates — at no additional cost to you.
  • Enrollment and administration: We guide employees through enrollment and remain available for ongoing questions, policy changes, and renewals.

 

Once the program is in place, day-to-day administration is minimal. We stay involved so you don't have to manage it alone.

Part of a Complete Employee Benefits Conversation

Group life and AD&D insurance works best as part of a broader benefits strategy. We can help you think through the full picture — including workers compensation, commercial liability, and other coverages that protect both your business and your team.

 

Employers across central Maryland trust Liberty Preferred to help them build coverage programs that make sense for their size, industry, and budget. Whether you're starting from scratch or reviewing what you already have in place, we're a straightforward call or message away.

Common Questions About Group Life and AD&D Insurance in Maryland

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Add Group Life and AD&D to Your Employee Benefits Package

  • How many employees do I need to offer group life insurance?

    Most carriers require a minimum of two to five enrolled employees to establish a group life program. Some programs are available to businesses with as few as two eligible employees, though minimums vary by carrier. We can identify the right carrier for your employee count.

  • Does the employer have to pay for the full benefit, or can employees contribute?

    Employers typically pay the base group life and AD&D premium, which covers the standard benefit level. Voluntary supplemental life — additional coverage employees elect for themselves or their dependents — is usually paid by the employee through payroll deduction at group rates. You decide how much of the base benefit to fund.

  • What's the difference between AD&D and group life insurance?

    Group life pays a death benefit for any cause of death. AD&D pays an additional benefit if the death results from a covered accident, and partial benefits if an employee survives but suffers a covered loss — such as a limb, sight, or hearing. The two are typically bundled together, so you're providing both protections under a single program.

  • Is group life insurance taxable to employees?

    Employer-paid group life insurance coverage up to $50,000 is generally excluded from an employee's taxable income under federal tax rules. Coverage above that threshold may result in imputed income to the employee. We recommend confirming the tax treatment with your accountant, but for most small business programs at the standard benefit level, the tax impact to employees is minimal or nonexistent.

  • Can we add group life and AD&D to an existing commercial insurance program?

    Yes. Group life and AD&D is a separate line of coverage from your commercial property, liability, or workers compensation policies, but we can coordinate all of your business insurance and employee benefits through a single consultation. Many of our Maryland business clients find it easier to review everything together rather than managing each coverage in isolation.

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