Group Life & AnnuitiesQuestion 685 of 716

Under federal tax rules, employer-paid group term life premiums are tax-free to the employee only up to ________ of coverage; the cost of coverage above that is taxable income to the employee:

a.$10,000
b.$100,000
c.$250,000
d.$50,000

Explanation

The first $50,000 of employer-provided group term life is a tax-free benefit; the imputed cost of coverage above $50,000 is taxable income to the employee. The other amounts are incorrect thresholds.

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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)
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