Which group life plan requires at least 75% participation from eligible members?

The group life plan that requires at least 75% participation from eligible members is the contributory plan. In this type of plan, employees are required to contribute to the cost of the insurance premiums, which typically necessitates a certain level of participation to ensure that the risk pool is adequate and sustainable. The 75% participation requirement helps to avoid adverse selection, where only those who anticipate needing the coverage would enroll, thereby increasing overall costs for the group.

Non-contributory plans, on the other hand, do not require any contributions from the insured members, which typically allows for broader participation as eligibility does not depend on individual financial commitment. Employer-paid plans also do not require individual employee contributions but may have different criteria for participation. Mandatory plans, while they suggest that participation is compulsory, do not have a specific percentage requirement tied to the participation threshold as noted in this question.

In summary, the contributory nature of the life plan necessitates active participation from members to validate the coverage, and the 75% threshold acts as an important parameter to achieve sufficient engagement from the eligible population.