Journal article
Increased Salary as an Alternative to Group Term Life Insurance
The Journal of risk and insurance, v 54(1), pp 119-130
01 Mar 1987
Abstract
When a company qualifies its group term life insurance (GTLI) plan under Section 79 of the Internal Revenue Code, employees are allowed to exclude from gross income the premiums on the first $50,000 of insurance coverage paid by their employers. All GTLI policies do not qualify for this excludable treatment. Several conditions must first be met, and, for small corporations, the cost of compliance may render the potential benefits prohibitively expensive. A company alternative that is available is to adjust the salaries of employees to enable them to acquire equivalent insurance outside the company. This paper examines the trade-offs available. Specifically, this paper offers a technique for determining when the increased salary alternative is "better" than a qualified GTLI plan and for establishing the degree of savings associated with the choice.
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Details
- Title
- Increased Salary as an Alternative to Group Term Life Insurance
- Creators
- Anthony P. CuratolaThomas L. DickensKent T. Fields
- Publication Details
- The Journal of risk and insurance, v 54(1), pp 119-130
- Publisher
- American Risk and Insurance Association
- Resource Type
- Journal article
- Language
- English
- Academic Unit
- Accounting
- Web of Science ID
- WOS:A1987DX31500008
- Other Identifier
- 991020532009404721
InCites Highlights
Data related to this publication, from InCites Benchmarking & Analytics tool:
- Collaboration types
- Domestic collaboration
- Web of Science research areas
- Business, Finance
- Economics