Dick Pays Insurance Premiums for His Employees

question 34

Multiple Choice

Dick pays insurance premiums for his employees. What type of insurance premium is not deductible as compensation paid to the employee?

• A)Health insurance with benefits payable to the employee.
• B)Whole life insurance with benefits payable to the employee's dependents.
• C)Group-term life insurance with benefits payable to the employee's dependents.
• D)Key-employee life insurance with benefits payable to Dick.
• E)All of the choices are deductible by Dick.

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Definitions:

Assignment

The transfer of rights or property from one party to another, often seen in contracts or similar agreements.

Assignable

Refers to rights or property that can be transferred or made over to another party by the owner.

Antiassignment Clauses

Provisions within contracts that restrict or prohibit the transfer of contract rights to another party.

Enforceable

Able to be enforced or maintained through legal proceedings.