Group Life Insurance
Group Life Insurance is one of the most popular
"Fringe Benefits". It is a relatively inexpensive benefit which employees
appreciate.
Frequently Group Life Insurance has been sold in conjunction
with Group Medical. Since however, HMO's do not usually offer Group Life,
an opportunity exists to provide a much appreciated benefit on a stand
alone basis which costs relatively little.
Taxability of Group Term Life Insurance
The IRS has announced new Table 1 rates to be used in computing the cost of excess
group term life insurance (over $50,000) after June 30, 1999.
These rates are used in calculating the cost of group
term life insurance coverage
in excess of $50,000, a cost which is taxable
to the employee. The cost of
up to
$50,000 of coverage is
tax exempt.
If the employee contributes toward the cost
of theinsurance, all of his
contribution
may be subtracted from the amount which
would otherwise be
taxable to him.
Uniform Premiums for $1,000 of
Group Term Life Insurance
Cost of $1,000 of Protection for One-Month Period
|
Age Bracket |
|
Age Bracket |
|
Under 25 |
.05 |
|
50 to 54 |
.23 |
|
25 to 29 |
.06 |
|
55 to 59 |
.43 |
|
30 to 34 |
.08 |
|
60 to 64 |
.66 |
|
35 to 39 |
.09 |
|
65 to 69 |
1.27 |
|
40 to 44 |
.10 |
|
70 & Above |
2.06 |
|
45 to 45 |
.15 |
|
|
|
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