Illinois Health Insurance Practice Exam

Question: 1 / 400

How are group disability income policy premiums usually treated in terms of taxes?

Cannot be deducted

Partially tax deductible

Fully tax deductible

Can be tax deducted by the employer; benefits subject to tax

Group disability income policy premiums are typically tax-deductible for the employer. This means that the employer can generally deduct the cost of providing group disability insurance coverage for its employees as a business expense. However, the benefits received by employees under the policy are usually subject to income tax. This is why option D, "Can be tax deducted by the employer; benefits subject to tax," is the correct answer.

On the other hand, options A, B, and C are not accurate in the context of group disability income policy premiums. Group disability income policy premiums are usually a tax-deductible expense for the employer, and the benefits are typically taxable income for the employees receiving them.

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