The success or failure of any organization depends on how motivated its employees' are. Group life insurance is a subset of Employee benefit to improve their performance. The objective of the study is to determine the effect of group life insurance service on employees' performance in Federal Ministry of Works and Housing. The study adopted Principal Agent Theory Propounded by Jensen and Meckling 1976. The study adopted survey research design, primary method of data collection through questionnaires. With the aid of Statistical Package for Social Science (SPSS), Simple regression analysis was used to test the Hypothesis of the study. Findings from the study revealed that, there is a significant negative relationship between the group life insurance and employees' performance. The study rejects the hypothesis which states that there is no significant relationship between group life insurance and employee's satisfaction in the Ministry of Work. The study recommended that the employer should educate the employees'' of the benefits of the group life insurance policy and ensure that claims are paid promptly.