CFP 512. 2023. MODULE 5- EMPLOYEE GROUP BENEFITS EXAM
QUESTIONS AND ANSWERS WITH COMPLETE SOLUTIONS
VERIFIED GRADED A++
Name two advantages of group term for the employee.
1. No medical exam required.
2. First $50,000 are tax-free.
Common formulas for group life insurance coverage- there are 3.
1. A percentage or multiple of earnings
2. Coverage based on years of service
3. Coverage limits for different employee classes
Section 79
IRC section that applies to the qualifying status of group term life insurance
What are the four requirements for Section 79 to receive favorable tax treatment?
1. Coverage must be a general benefit.
2. Must be a group benefit as part of compensation.
3. Must be provided by the employer as a master policy or individual policies.
4. Coverage must be consistent with each employee.
Life insurance does not qualify as group life under Section 79 if provided to less
than ______ employees.
10 employees
QUESTIONS AND ANSWERS WITH COMPLETE SOLUTIONS
VERIFIED GRADED A++
Name two advantages of group term for the employee.
1. No medical exam required.
2. First $50,000 are tax-free.
Common formulas for group life insurance coverage- there are 3.
1. A percentage or multiple of earnings
2. Coverage based on years of service
3. Coverage limits for different employee classes
Section 79
IRC section that applies to the qualifying status of group term life insurance
What are the four requirements for Section 79 to receive favorable tax treatment?
1. Coverage must be a general benefit.
2. Must be a group benefit as part of compensation.
3. Must be provided by the employer as a master policy or individual policies.
4. Coverage must be consistent with each employee.
Life insurance does not qualify as group life under Section 79 if provided to less
than ______ employees.
10 employees
