What Is Imputed Life Insurance?
0 POINTSContact Meview profileDavid RacichPROFountain Hills, ArizonaLife insurance may be taxable in a group benefit plan with term or more employees. If the employer pays part or all of the life insurance premium, the employee pays an imputed tax for the economic benefit. It’s important to weigh the tax ramifications of an employer subsidized benefit if you’re healthy. It may be better to select another benefit and purchase life insurance outside of the group benefit package.Answered on May 19, 2013+01+1 this answer
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4330 POINTSview profileJerry Vanderzanden, CLU, ChFCCo-Founder, Coastal Financial Partners Group, CaliforniaEmployer provided life insurance is taxable to the employee except that the first $50,000 of coverage is free of tax. Amounts provided above $50,000 of coverage are imputed as income based on a government rate table. Called Table I, the rate per 1000 of coverage varies by age and is included in your W-2.Answered on May 20, 2013flag this answer
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