Understand Benefits, Survivor’s Benefits and Taxation of Group Insurance

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As we mentioned in other articles, many corporations will offer competitive packages, and that’s even a strategy in hiring and retaining employees. These competitive packages include group insurance to plans that provide individual retirement accounts or traditional registered pension plans, etc. In this article, we will discuss benefits, survivor’s benefits and taxation of group insurance.

1. Group benefits For employers and employees
a) Coverage benefits such as dental care, life insurance, medical care, life and disability for employees and their families.
b) Immediate access to low lost insurance than is available individually.
c) The premium is tax deductible
d) Enhancing the likelihood of staff retention.
e) Increasing the employee morale and loyalty.
Group Insurance benefits must not discriminate between employees but a different schedule can apply to different classes of employees. As such, different amounts of insurance may be provided for different employees according to earnings level and position in the company.
Often the life insurance benefit will be one, two or even three times the earnings. The contract will usually contain a non-evidence limit and a maximum amount that the insurance company will issue.

2. Survivor’s benefits
Generally, The contract may contain a survivor's benefit of 25% or more of the deceased employee’s salary, plus an extra percentage for each dependent child. Remarriage of the surviving spouse will generally eliminate the benefit.

3. Taxation
a)The employer’s contributions are business expense and tax deductible
b) The employee receives them as a taxable benefit and contribution of employees are not tax deductible.

I hope this information will help. If you need more information, you can read the complete series of the above subject at my home page:

http://lifeanddisabitityinsuranceunderwriter.blogspot.com/
http://life-insurance12.blogspot.com
http://groupinsurance01.blogspot.com/