A non-contributory group term life plan is characterized by what?

A non-contributory group term life plan is characterized by the entire cost of the plan being paid for by the employer. In this type of arrangement, employees do not have to make any financial contributions toward the premiums of the life insurance coverage. This structure incentivizes participation since employees receive coverage at no cost to them, making it more attractive and accessible.

In a non-contributory plan, the employer bears the full responsibility for funding the insurance, which can help enhance employee morale and promote a sense of security among the workforce. This characteristic is essential because it distinguishes non-contributory plans from contributory ones, where employees are required to share the cost of premiums. While participation may indeed be mandatory in many cases, the defining trait that categorizes a plan as non-contributory is based primarily on the funding responsibility resting solely with the employer.