New portability for group term life plans
Article Abstract:
The Standard Insurance Co. of Portland has offered to cover the extension of life insurance benefits for terminated employees at no additional employer cost. The extension of up to 2 years allows terminated employees to pay the premiums which are based on ratings which differ from the group plan. The plan is offered in 47 states to employers with over 100 employees. The addition of such portability by other group term life insurance companies to their plans would be welcome.
Publication Name: Estate Planning
Subject: Law
ISSN: 0094-1794
Year: 1999
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Living benefits riders provide access to life insurance proceeds for the terminally ill
Article Abstract:
Various insurance companies now offer living benefits riders giving terminally ill policyholders access to life insurance money up to certain limits, but the IRS has yet to rule on whether these living benefits are taxable. Federal legislation has been introduced which would permit policyholders to get these accelerated payments tax-free. Even if the legislation does not pass right away, living benefits riders still appear to be a 'no lose' proposition.
Publication Name: Estate Planning
Subject: Law
ISSN: 0094-1794
Year: 1992
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Tax-free benefits for the terminally ill ok'd
Article Abstract:
The IRS has issued proposed regulations allowing life insurance policies to pay tax-free benefits to terminally ill persons expected to die within 12 months of receiving such benefits. Possible uses for the benefits will include medical needs such as long-term care. The benefits will qualify as amounts paid due to the insured's death according to IRC 101(a) and 7702, allowing the policy to still meet the IRC's definition of a life insurance contract.
Publication Name: Estate Planning
Subject: Law
ISSN: 0094-1794
Year: 1993
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