In which type of life insurance arrangement does the employer cover the entire cost of premiums?

In a noncontributory plan, the employer takes on the full responsibility of covering the cost of premiums for life insurance without requiring any contributions from employees. This arrangement ensures that all eligible employees are automatically enrolled in the policy, providing them with life insurance coverage regardless of their individual financial situations. By shouldering the entire premium cost, employers can enhance employee benefits packages and attract or retain talent, while also simplifying the participation process since employees do not have to make any payment decisions.

This type of plan stands in contrast to contributory arrangements, where both the employer and employees share the premium costs. Individual plans are separate contracts and not related to employer contributions, while term plans refer to a type of life insurance that provides coverage for a set period and can be offered through either contributory or noncontributory structures.