Group Life & AnnuitiesQuestion 104 of 716
Under Internal Revenue Code Section 79, how much employer-paid group term life coverage on an employee is excluded from the employee's taxable income?
a.The first $25,000
b.The first $100,000
c.The first $50,000
d.All employer-paid coverage regardless of amount
Explanation
Section 79 excludes the cost of the first $50,000 of employer-paid group term life coverage from the employee's taxable income. The cost of coverage above $50,000, calculated from IRS Table I, is imputed income on the employee's W-2.
Law Reference: 26 U.S.C. §79This topic, taught in full in the California Life & Health Insurance Producer Exam guide. California Life & Health Insurance Producer Exam — Complete Study Guide (2026) — PDF + EPUB, $19.99 · 14-day refund →
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PrepPass team · Verified against California Life & Health Insurance License Exam · How we review
Reviewed by John Zihao Zhang — California-Licensed Life Insurance Agent (CA Dept. of Insurance License #4396095 — verify)