Group Life Insurance

Group Life Insurance

Group Life Insurance means:
a basic employee benefit Under which an employer buys a master policy and issues to employees certificates denoting participation in the plan. Group life is also available through unions and associations. It is usually issued as yearly renewable term insurance although some policies provide permanent insurance. An employer may pay all the cost or share it with employees. The premiums paid by the company on such insurance are not taxable to the employee on coverage of up to $50,000 per person. Former IRC (check if this IRC provision is current here) §79 and Reg. §1.79-l(a).

Description and Definition of Group Life Insurance

Life insurance obtained by an employer for employees. Employees are not taxed on up to $50,000 of group life insurance coverage. Premiums for the first $50,000 of life insurance per employee are deductible by the employer.


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