X. Federal Tax Considerations for Accident and Health Insurance Flashcards
1
Q
In group health insurance, how are premiums paid by the employer for disability income insurance taxed?
A
Tax deductible as a business expense
2
Q
Are key person disability premiums deductible to the business?
A
no, but the would receive benefits tax free.
3
Q
How are the benefits received by a business in a disability buy-sell arrangement?
A
income tax free to purchase the business interest of a disabled partner.
4
Q
What is the purpose of a health savings account?
A
Help save for qualified health expenses for themself, spouse or dependent when covered by a high deductible plan. Contributions are not included in the individual’s taxable income.
5
Q
Name several consumer driven plans.
A
Health Savings Account, Health Reimbursement Account, Flexible Spending Account.
