Group Insurance 04 - Understand Benefits, Survivor's Benefits and Taxation of Group Insurance

As we mentioned in other articles, many corporationsdifferent amounts of insurance may be provided for
will offer competitive packages, and that's even adifferent employees according to earnings level and
strategy in hiring and retaining employees. Theseposition in the company.
competitive packages include group insurance to plansOften the life insurance benefit will be one, two or
that provide individual retirement accounts or traditionaleven three times the earnings. The contract will usually
registered pension plans, etc. In this article, we willcontain a non-evidence limit and a maximum amount
discuss benefits, survivor's benefits and taxation ofthat the insurance company will issue.
group insurance.2. Survivor's benefits
1. Group benefits For employers and employeesa)Generally, The contract may contain a survivor's
Coverage benefits such as dental care, life insurance,benefit of 25% or more of the deceased employee's
medical care, life and disability for employees and theirsalary, plus an extra percentage for each dependent
families.b) Immediate access to low lost insurance thanchild. Remarriage of the surviving spouse will generally
is available individually.c) The premium is taxeliminate the benefit.
deductibled) Enhancing the likelihood of staff3. Taxationa)The employer's contributions are business
retention.e) Increasing the employee morale and loyalty.expense and tax deductibleb) The employee receives
Group Insurance benefits must not discriminatethem as a taxable benefit and contribution of
between employees but a different schedule canemployees are not tax deductible.
apply to different classes of employees. As such,I hope this information will help.