Life insurance protects employees and their dependents in the case of death. Life insurance meets the cash needs of an insured's survivors when the insured dies. Some life insurance policies can also financially help those with terminal and or critical illnesses. This form of protection leaves the employee with a sense of security that their loved ones will be cared for in the event of their death or serious illness. The employer has the opportunity to provide employees with a group plan that the individual would not be able to get as affordably on their own. Life insurance is an inexpensive way to add extremely important value to an employer's benefit package. Aside from the benefits received by the employee in being covered, employer contributions toward the cost of life insurance may be deducted from their company income as a business expense for tax purposes, or it can be offered as a voluntary benefit. In either case, consult with your accountant and or tax attorney to find which option is best for you.