Premimums paid to an insurance to an insurance company by an empolyer for the employees's grup term life insurance coverage are considered a non-cash taxable beniefit is it true or false?

Answer 1

Maybe. Group life insurance coverage is a "non-cash benefit".

Section 79 of the Internal Revenue Code provides that an employer can provide up to $50,000 of group term life insurance coverage to each employee as a tax free fringe benefit.

The employee would be taxed on the value of any coverage that exceeds $50,000. So the amount over $50,000 would be a non-cash taxable benefit.