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Showing results for tags 'Group term life'.
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The only advantages I can think of are: 1. No or minimal basic life is offered so buying voluntary life through cafeteria plan lets you take full advantage of the $50,000 non-taxable coverage; or 2. The voluntary life rates are higher than the imputed income rates so tax on imputed income is less than the tax paid when buying voluntary life with post-tax dollars. Am I missing something? -
Is this a breach of fiduciary duty under ERISA? Company sponsors a group term life plan. Company provides a basic life benefit at no cost to employees. Employees may purchase supplemental life. Basic and Voluntary life are with the same insurer. The basic life loss ratio runs pretty consistently around 150-200% per year. Voluntary life loss ratio runs a pretty consistent loss ratio of about 30%. It is clear that the voluntary life is subsidizing basic life, is this a breach of fiduciary duty? Thanks