Hi Bobby,
Life Insurance as seen under ERISA is a very complicated bit of legal mumbo jumbo according to the American Bar Association. https://www.americanbar.org/content/newsletter/groups/labor_law/ebc_newsletter/14_sum_ebc_news/erisa.html
Since I’m not sure what your intent is for the question, I can’t provide an answer specific to your concern. Further, we are not attorneys ourselves, and can’t provide legal advise. ERISA applies to benefits transparency. Companies with 2 or more employees must comply. Here is an ERISA fact sheet. https://www.dol.gov/agencies/ebsa/about-ebsa/our-activities/resource-center/fact-sheets/what-is-erisa
In general it appears that life insurance would be portable if an employee leaves the company (under ERISA) and therefore the employee shouldn’t have to resubmit to a health eval, but the employer doesn’t have any obligation to tell employees that… UNLESS, your plan docs say otherwise. Thus it’s confusing.
Here’s our article on offering life insurance to employees for reference. https://fitsmallbusiness.com/how-to-offer-life-insurance/
I would recommend reviewing your plan documents with an attorney for specific guidelines. You can find one here: https://fitsmallbusiness.com/small-business-lawyer/
Best of luck to you!
