(a) What is group-term life insurance? Life insurance is not group -term life insurance for purposes of section 79 unless it meets the following conditions: Group term life insurance.
(4) The amount of insurance provided to each employee is computed under a formula that precludes individual selection. This formula must be based on factors such as age, years of service, compensation, or position. This condition may be satisfied even if the amount of insurance provided is determined under a limited number of alternative schedules that are based on the amount each employee elects to contribute. However, the amount of insurance provided under each schedule must be computed under a formula that precludes individual selection.
(b) May group-term life insurance be combined with other benefits? No part of the life insurance provided under a policy that provides a permanent benefit is group -term life insurance unless -
(i) The insurance is provided to all full-time employees of the employer or, if evidence of insurability affects eligibility, to all full-time employees who provide evidence of insurability satisfactory to the insurer.
(ii) The amount of insurance provided is computed either as a uniform percentage of compensation or on the basis of coverage brackets established by the insurer. However, the amount computed under either method may be reduced in the case of employees who do not provide evidence of insurability satisfactory to the insurer. In general, no bracket may exceed 2 1/2 times the next lower bracket and the lowest bracket must be at least 10 percent of the highest bracket. However, the insurer may establish a separate schedule of coverage brackets for employees who are over age 65, but no bracket in the over-65 schedule may exceed 2 1/2 times the next lower bracket and the lowest bracket in the over-65 schedule must be at least 10 percent of the highest bracket in the basic schedule.
(iii) Evidence of insurability affecting employee 's eligibility for insurance or the amount of insurance provided to that employee is limited to a medical questionnaire completed by the employee that does not require a physical examination.
(ii) The insurance is restricted to, but mandatory for, all employees of the employer who belong to or are represented by an organization (such as a union) that carries on substantial activities in addition to obtaining insurance.
(i) They are not eligible for insurance under the terms of the policy because they have not been employed for a waiting period, specified in the policy, which does not exceed six months.
(ii) They are part-time employees. Employees whose customary employment is for not more than 20 hours in any week, or 5 months in any calendar year, are presumed to be part-time employees.
(iii) They have reached the age of 65.
(5) For purposes of paragraph (c) (1) and (2) of this section, insurance is considered to be provided to an employee who elects not to receive insurance unless, in order to receive the insurance, the employee is required to contribute to the cost of benefits other than term life insurance. Thus, if an employee could receive term life insurance by contributing to its cost, the employee is taken into account in determining whether the insurance is provided to 10 or more employees even if such employee elects not to receive the insurance. However, an employee who must contribute to the cost of permanent benefits to obtain term life insurance is not taken into account in determining whether the term life insurance is provided to 10 or more employees unless the term life insurance is actually provided to such employee.
(d) How much must an employee receiving permanent benefits include in income? -
(4) Mortality tables and interest rates used. For purposes of paragraph (d) (2) and (3) of this section, the net level premium reserve ( R ) and the net single premium ( X or Y ) shall be based on the 1958 CSO Mortality Table and 4 percent interest.
(6) Different policy and taxable years.
(7) Example. The provisions of this paragraph may be illustrated by the following example:
(e) What is the effect of State law limits? Section 79 does not apply to life insurance in excess of the limits under applicable state law on the amount of life insurance that can be provided to an employee under a single contract of group -term life insurance.
30 year term life insurance cost
(3) See sections 106 and § 1.106-1 for rules relating to certain insurance that does not provide general death benefits, such as travel insurance or accident and health insurance (including amounts payable under a double indemnity clause or rider).
(h) Effective date. Section 1.79-0 applies to insurance provided in employee taxable years beginning on or after January 1, 1977 (except as provided in 26 CFR 1.79-1(g) (revised as of April 1, 1983) with respect to insurance provided in employee taxable years beginning in 1977). Sections 1.79-1 through 1.79-3 apply to insurance provided in employee taxable years beginning after December 31, 1982. See 26 CFR 1.79-1 through 1.79-3 (revised as of April 1, 1983) for rules applicable to insurance provided in employee taxable years beginning before January 1, 1983.
This is a list of United States Code sections, Statutes at Large, Public Laws, and Presidential Documents, which provide rulemaking authority for this CFR Part.
It is not guaranteed to be accurate or up-to-date, though we do refresh the database weekly. More limitations on accuracy are described at the GPO site.
U.S. Code: Title 26 - INTERNAL REVENUE CODE
The following are ALL rules, proposed rules, and notices (chronologically) published in the Federal Register relating to 26 CFR Part 1after this date.
2018-06-12; vol. 83 # 113 - Tuesday, June 12, 2018
2018-06-08; vol. 83 # 111 - Friday, June 8, 2018
2018-05-30; vol. 83 # 104 - Wednesday, May 30, 2018
2018-04-03; vol. 83 # 64 - Tuesday, April 3, 2018
2018-03-28; vol. 83 # 60 - Wednesday, March 28, 2018
2018-03-13; vol. 83 # 49 - Tuesday, March 13, 2018
2018-02-15; vol. 83 # 32 - Thursday, February 15, 2018
2018-02-02; vol. 83 # 23 - Friday, February 2, 2018
2017-12-27; vol. 82 # 247 - Wednesday, December 27, 2017
2017-12-19; vol. 82 # 242 - Tuesday, December 19, 2017
2017-11-15; vol. 82 # 219 - Wednesday, November 15, 2017
2017-10-26; vol. 82 # 206 - Thursday, October 26, 2017
2017-10-20; vol. 82 # 202 - Friday, October 20, 2017
2017-10-19; vol. 82 # 201 - Thursday, October 19, 2017
2017-10-16; vol. 82 # 198 - Monday, October 16, 2017
2017-10-12; vol. 82 # 196 - Thursday, October 12, 2017
2017-10-06; vol. 82 # 193 - Friday, October 6, 2017
2017-10-05; vol. 82 # 192 - Thursday, October 5, 2017
2017-09-28; vol. 82 # 187 - Thursday, September 28, 2017
2017-09-25; vol. 82 # 184 - Monday, September 25, 2017
2017-09-20; vol. 82 # 181 - Wednesday, September 20, 2017
2017-09-19; vol. 82 # 180 - Tuesday, September 19, 2017
2017-09-15; vol. 82 # 178 - Friday, September 15, 2017
Time life insurance company
2017-09-13; vol. 82 # 176 - Wednesday, September 13, 2017
2017-09-07; vol. 82 # 172 - Thursday, September 7, 2017
2017-09-05; vol. 82 # 170 - Tuesday, September 5, 2017
2017-08-14; vol. 82 # 155 - Monday, August 14, 2017
2017-07-26; vol. 82 # 142 - Wednesday, July 26, 2017
2017-07-25; vol. 82 # 141 - Tuesday, July 25, 2017
2017-07-20; vol. 82 # 138 - Thursday, July 20, 2017
2017-07-13; vol. 82 # 133 - Thursday, July 13, 2017
2017-06-30; vol. 82 # 125 - Friday, June 30, 2017
2017-01-31; vol. 82 # 19 - Tuesday, January 31, 2017
2017-01-24; vol. 82 # 14 - Tuesday, January 24, 2017
2017-01-23; vol. 82 # 13 - Monday, January 23, 2017
2017-01-19; vol. 82 # 12 - Thursday, January 19, 2017