Which statement is TRUE regarding a non-contributory group life insurance plan?

In a non-contributory group life insurance plan, the essential characteristic is that all eligible employees are required to participate without having to contribute any portion of the premium themselves. This means that the employer covers the entire cost of the premiums, ensuring that every eligible employee receives coverage automatically.

This design aims to simplify the enrollment process and maximize participation rates, which can lead to a more comprehensive coverage scenario for employees. Non-contributory plans encourage employers to provide this benefit without placing a financial burden on employees to opt into the plan.

The other statements do not accurately describe the nature of non-contributory plans. For instance, in contributory plans, employees would indeed contribute to the premium, but that does not apply here. Additionally, requirements for the employer to pay a specified percentage of the premium are irrelevant in the context of a fully non-contributory plan, as the employer is responsible for the entire premium. Finally, the allowance for employees to opt out also contradicts the premise of a non-contributory plan, where participation is mandatory for all eligible employees.