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Can an employer offer the same insurance to employees but fully cover the premiums for some and require others to pay half of the premiums?
No, if they are similiary situated individuals. It could be done by class - say management vs. salaried For more details http://www.steveshorr.com/dictionary.htm#Similarly_Si…tuated_Non-COBRA_Beneficiaries
When a majority stock holder has his corporation pay personal life insurance premiums and does not report the premiums on form 1099 is the death benefit taxable income to the beneficiary?
Answer Yes, simply report the premiums paid on your taxes. Keep in mind if WL and you do not report your premiums that are paid for you, the cash value is… taxed as well rather than viewed as a return on premium.
Answer Return of Premium (ROP) is a relatively new feature available in Term Life Insurance. The major drawback to Term Insurance is that if y…ou live beyond the stated term of the policy one of two things happens. It either ends completely and all your premiums are gone forever or it increases from the guaranteed premium to some new amount which is generally thousands of dollars more. A recent 43 year old female I quoted had a $325 premium guaranteed for 20 years but if she wanted to continue coverage in year 21 without being medically underwritten, the cost was over $7000. To solve this insurance companies added a Return of Premium rider. In the example above, if she lived for twenty years she could get all the premiums she paid back. There would be no interest or other enhancement, just the exact amount paid. However, to continue the example above, the premium amount with the ROP included would be $1103 for this woman. It is important to know that this idea has been extended to some other forms of coverage. One company that offers Defined Benefit Health plans and supplemental plans has a rewards program that does the same thing. If you keep the plan in place for five years you can get 50% of your premiums back, wait until year 7 and get 75% back or wait until year 10 and get 100% back. Many of my clients like their supplemental plan that includes Ameritas Dental, VSP vision, Rx plan, $10,000 AD&D, $7500 Accident plan and much more for only $89/month for the whole family. That is cheaper than most family dental plans.
Answer There are many different types of life policies. You need to call your insurance company to get the specifics of your policy. Some policies will s…imply cancel when payment is not made. Others have cash calue build up that can make your payment for you. In some sitiuations it may benefit you to convert it to a paid up policy.
There may be some state regulations that prohibit that. However, under Section 105 of the Revenue Code an employer can establish a Health Reimbursement Arrangement and do tha…t. If you need help you can find health insurance agents that specialize in this stuff at www.NAABC.com.
If mandatory insurance policy is provided through an employer and the insured dies shortly after termination of employment does the policy pay out?
It is going to depend on when the last premium payment was paid, if it was a portable product and how long it really had been after termination. This is because not all …policies and companies are the same.
No. Life insurance benefits are not eligable for taxation unless the insured passed away without assigning a beneficiary. In this situation the benefits are paid in…to the deceased's estate and are subject to any back taxes or child support owed by the deceased, or the would be inheritor. Cash value is not the same as an insurance benefit and may be taxable in some situations. Group (employment) insurance has no cash value.
No it is not assuming the policy isn't a Modified Endowment Contract.
The money you pay in premiums is taxed. This is how they are able to give you a tax-free death benefit.
You mean they are paying you while you can't work. Yes that is taxable...just like the income it is replacing would have been.
In CA, yes. This may jeopardize the entire plan, as the Insurance Companies, generally require the employer to pay at least 50% of the premium. The employer could shop… rates at http://www.quotit.net/eProGroup/login.asp?brokerID=23433638&license_no=0596610 with no obligation. Healthy employees, no pre-exisiting conditions can shop for individual plans here http://www.quotit.net/eproIFP/webPages/infoEntry/InfoEntryZip.asp?license_no=0596610 Those with health problems would not be able to get COBRA if there is no group health plan in force. They could get HIPAA http://www.steveshorr.com/HIPAA.Rates.htm
That is called rebating and it may or may not be illegal in your state. Check with your local department of insurance.
Damned if you do, damned if you don't. If it is not taxed, it's a health reimbursement arrangement that likely runs afoul of the nondiscrimination rules and ACA …requirement that there be no annual limits beginning in 2014. If it is taxed, it may increase the regular rate of pay for FLSA purposes.
I assume you mean the premiums paid by your employer as an employee benefit. No, they will not be taxable. The change to the law for 2011 requires that the value of health i…nsurance be reported on the W-2, but it is not being counted as taxable income. Why require the health insurance cost be reported on the W-2 at all? "The new health insurance law will eventually penalize people who are not insured with a tax penalty. The W-2 reporting requirement will help the Internal Revenue Service verify that people have coverage, both for themselves and their dependents. There's also a tax on the so-called "Cadillac" or "gold-plated" health insurance policies, which are policies that cost significantly more than the national average. The W-2 reporting will allow the IRS to more easily collect the tax. We should also emphasize that the Cadillac tax doesn't go into effect until 2018, and it will apply to health insurance plans that cost more than $10,200 for individual coverage and $27,500 for family coverage, with some exceptions for people in high-risk categories. Most people will not be affected by the tax; analysts expect it to hit fewer than 20 percent of all policies."
its paid on the value of goods travelling in it n value of the ship
Term insurance is NOT permanent! As the name suggests, the policy is designed to protect for a specific term or number of years. Rates are fixed for a certain number of year…s selected at policy purchase time. Before the policy expiration, the policy owner has the option to convert the policy to a permanent coverage if insurance is still needed, or let it lapse and stop paying premiums. Some term insurance has a return of premium clause, which allows that premiums be returned and can be used to buy a paid up permanent policy, for a lower benefit amount, without any underwriting. Not all companies have the option to convert to a permanent life insurance policy. Ask for a convertible term life insurance policy when you're looking for term insurance, just in case you may still need the coverage beyond the initial term period. ANOTHER EXPLANATION: No, term life insurance is not a permanent policy. That word applies only to whole life insurance. In term insurance, premiums are fixed for a certain number of years selected at the time of application. One of the choices is usually a level premium for a fixed period of years. The thing to understand about term insurance is that premiums increase with age, unless the level premium option is selected. Even then, the premiums remain level only for a fixed period of time, for example, 20 years.