Texas Life and Health
Flashcard maker : Lily Taylor
Under which condition would be an employees group medical benefits be exempt from income taxes?
An employee’s group medical benefits are generally exempt from taxation as income.
under a key Person disability income policy, premium payments
Are made by the business and are not tax-deductible.
Which of the following is INCORRECT concerning taxation of disability income benefits?
If paid by the individual, the premiums are tax deductible.
Which of the following is correct regarding Business Overhead Expenses insurance?
Premiums are tax deductible.
Concerning group Medical and Dental insurance, which of the following statements is INCORRECT?
Employee benefits are tax deductible the year in which they were received.
For group medical and dental expenses insurance, what percentage of premium paid by the employer is deductible as a business expense?
What type of insurance is sold to small business owners that must meet overhead expenses such as rent or utilities following a disability?
Business overhead expense
Which of the following is NOT true regarding Workers Compensation?
Benefits are offered by the insurer.
Which type of insurance provides funds for a business organization to purchase the business interest of a disabled partner?
Group disability income insurance premiums paid by the employer are
Deductible by the employer as an ordinary business expense.
Which of the following premium modes would result in the highest annual cost fora Life Insurance Policy?
An insured is covered under 2 group health plans-under his own and his spouse’s. He had suffered a loss of $2000. After the insured paid the total $500 in deductible and coinsurance, the primary insurer covered $1,500 of medical expenses. What amount, if any, would be paid by the secondary insurer?
A husband and wife are insured under group health insurance plans at their places of employment. Because their employers pay for their plans, each is covered as a dependent under their spouse’s coverage. if the husband is hospitalized, how are the medical expenses likely to be paid?
The benefits will be coordinated.
S is a sole business proprietor who owns a medical expense plan. What percentage of the cost of the plan may he deduct?
Which of the following statements is correct concerning taxation of long-term care insurance?
Excessive benefits may be taxable.