Forced Life Insurance by Employer

[manocska]

My employer used to have totally free life insurance for employees at no charge. It was in the amount of one time of base salary. As of January 1st they will bump it up to double the amount of the base salary. Employer claims this coverage is still free, but due to an IRS rule, if your coverage is over $50,000, the employee ends up having some tax taken out of their paychecks every month. Although it really is a small amount (between $0.30 cents and $4.00 per month), I still want to opt out. I inquired about opting out. My employer told me I cannot. I asked if they would consider lowering the amount to just the original one time base salary amount. I was told no.
Can an employer force people to take a coverage they do not want? Especially when the employee ends up paying extra tax for it? My location is Florida.

 

[cbg]

Your employer is absolutely right. Almost all group life insurance contracts require 100% coverage or the contract is void; if you opted out, the benefit would be pulled for the entire group. They also do not permit the employees to elect coverage other than that which the policy says. They are also correct about the IRS ruling. I'm afraid that unless your employer is willing to change the entire contract around to suit your request, which I certainly wouldn't do, you're stuck.

 

[manocska]

I Still Cannot Believe It!

If you are right, then I must say that it is absolutely shocking! So if my employer opts to cover me five times base salary, I will get stuck with a growing tax implication, and I have no say in it? Wow! I thought I was free to spend my paycheck the way I wanted it.
Thanks for your answer though.