Group Life Insurance
An employee with $25,000 group term life coverage was recently fired. This employee's group coverage may be converted to a
$25,000 individual whole life policy
What minimum percentage of all eligible employees must participate in a group life insurance plan if the premiums are completely paid for by the employer?
100%
what situation requires all eligible employees to be covered under group life insurance plan?
Entire premium paid by the employer
What is the reason insurance companies require a minimum number of employees participating in a group insurance plan?
Adverse selection is minimized
Servicemembers' Group Life Insurance (SGLI) is provided by the Federal Government and provides Group Life Insurance for full time members of the
Armed Forces
If its employees share in the cost of insurance, what type of group life insurance plan would a corporation have?
Contributory
Under federal tax laws, what is the tax treatment for an employer providing $50,000 of a contributory group Term Life plan to all its eligible employees?
Portion of the premiums paid for by the employer may be a tax deduction
Group life insurance policies are generally written as
annually renewable term
The premiums paid by an employer for his employee's group life insurance are usually considered to be.
tax-deductible to the employer