Which of these statements about noncontributory employee group life insurance is FALSE?

The statement that "a minimum number of employees is required to participate" is indeed false when it comes to noncontributory employee group life insurance. In a noncontributory plan, the employer pays the entire premium for the life insurance coverage, which typically leads to broader enrollment among employees without the burden of costs falling on them.

It is essential to understand that unlike contributory insurance plans, where employee contributions may be required, noncontributory plans aim to offer coverage to all eligible employees without requiring them to pay into the plan. Because these plans often have a goal of ensuring universal coverage among eligible employees, they can function effectively even with a small number of participants, making the necessity for a minimum participation threshold irrelevant in this context.

Ultimately, this approach fosters a sense of security among employees, as all of them are covered without having to bear any costs themselves, thereby enhancing the overall value of the employee benefit offering.