What tax treatment do premiums paid by an employer for group life insurance typically receive?

Premiums paid by an employer for group life insurance are generally considered tax-deductible expenses for the employer. This means that the employer can deduct the cost of these premiums from their taxable income, which can provide a financial incentive for businesses to offer this type of coverage as part of an employee benefits package.

Additionally, while employees typically do not incur tax liability on the premiums paid by the employer, the death benefit provided by group life insurance is usually tax-free to the beneficiary upon the policyholder's death. This adds appeal to group life insurance plans offered by employers, as it ensures that employees can receive substantial benefits without incurring tax obligations under usual circumstances.

It's important to note that while the tax-deduction aspect applies to the premiums making this answer correct, the specific implications for employees, such as any potential taxation on benefits received, can vary based on the structure of the plan and the amounts involved.