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