This is a good question, and I’m surprised there isn’t more data out there on average employer life insurance coverage.
I think the reason is because there’s so much variation from one employee to the next. An employee who is young and single will not likely be thinking about life insurance as much as an employee who is married with 3 children. Businesses may offer different amounts, depending on each employee’s preference. For example, there may be a small base coverage (say, 1x or 2x the value of their salary), then the option to increase coverage with automatic deductions from their paycheck.
So in other words, $50,000 – $100,000 sounds like an appropriate amount for base coverage… especially if there’s an option to increase this with employee contributions.