Most group life insurance is offered on a contributory basis mainly because the employer enjoys substantially higher tax benefits than they do with noncontributory plans.(Group Term Life Insurance)

Question

Quizplus · Accepted Answer

Most group life insurance is offered on a contributory basis mainly because it allows for shared cost between the employer and employees, not primarily for tax benefits. Noncontributory plans are fully paid by the employer, which can indeed offer tax advantages, but the choice between contributory and noncontributory plans is more about cost-sharing and encouraging employee participation.

Most Group Life Insurance Is Offered on a Contributory Basis