Many companies offer term life insurance policies to their employees as a fringe benefit. The amount often ranges from the equivalent of your annual salary to triple your annual salary. The employer usually pays the entire premium. Only the cost of the first $50,000 in life insurance is tax-free. Any premium an employer pays on your behalf for an insurance policy over $50,000 is additional income that you must claim on your tax return. In addition, this benefit is available to you only while you are employed with the company. When you leave, you lose the protection. If having that insurance was part of your estate planning, you now have to reevaluate your position.
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