Question 4017 of 287 · Texas Life, Accident and Health Agent Exam

The premium for group term life insurance provided by an employer is

Exactly one answer is correct.

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Correct answer to question 4017

  • D: deductible by the employer, and the employee has taxable income only on coverage exceeding $50,000

Explanation

Employer-paid group term coverage up to $50,000 is a tax free fringe benefit. The cost of coverage over that amount is imputed income to the employee under IRS tables.

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