Section 79 Plan
Definition of "Section 79 plan"
Group whole life insurance policy designed to reduce an employee's exposure to income tax on the value of life insurance provided by the employer. The policy separates the term element from the cash value element, and apportions part of the premium to each. The plan takes advantage of the tax exemption to employees on a specified amount of group term insurance plans and the special tax rate on the premium for the amount of insurance over that amount.
Popular Insurance Terms
Time during which an assessment life insurance company has the right to assess policyholders if losses are worse than anticipated in the premium charged. ...
Termination of premium payments by an employer on behalf of an employee to an employee benefit plan. ...
One who purchases insurance, usually property and liability and not life or annuities, by utilizing his or her own employee purchaser or licensed broker/agent at a minimum annual premium of ...
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Licensed agent's signature on an insurance policy. ...
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