in General Discussion
Sat Dec 23, 2017 8:55 am
• 3 Posts
This can be a valuable supplement to personal insurance. It is purchased on a group basis by the employer from an insurance company. The employer pays a part of the premium; sometimes he pays the whole thing. His contributions are tax-deductible. The employee's contribution, if any, comes out of after-tax earnings. The cost of group premiums is averaged out, based on the overall costs for a number of people, whose ages can vary from, say, 25 to 65.
If the employee is Cardio Clear 7 Reviews required to pay part of the premium, he should always compare the cost of his contribution with the premium price he would be paying for the same amount of individual insurance. If the group price is less, then obviously he has a good buy. But if it is more-and it can be for a younger person-then it may not pay for him to enter the group plan. Term Insurance. This is the usual form of group insurance. It is issued annually and remains in force as long as the employer chooses. In most states, when you retire, you must have the right to convert the term policy to an individual ordinary life policy, without a physical examination. Don't overlook this right. It is a valuable one.
Be aware, though, that if you leave the company due to a severance, most companies' term life insurance benefits do not include conversion rights, so you would lose the coverage. The employer's cost is tax-deductible. The employee, in turn, pays no tax on the part of the premium which the employer pays up to $50,000 of coverage. If the employer pays for more than $50,000 then the premium for the excess is taxable to the employee according to a Treasury table which is based on the employee's attained age.