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Is there any advantage to putting voluntary group life in a cafeteria plan?


CaliBen

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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?

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