Section 79 Plan

What Does Section 79 Plan Mean?

A Section 79 plan is a type of life insurance offered as an employee benefit. It is an attractive option for businesses because the premiums are fully tax-deductible, provided the insurance coverage does not exceed $50,000 per employee.

Insuranceopedia Explains Section 79 Plan

Section 79 plans are an excellent way for employers to provide term life insurance as a benefit to their employees. Such plans can help companies attract top talent and improve employee retention rates.

In many cases, employers can also offer permanent life insurance through a Section 79 plan. The plan derives its name from the section of the IRS code that governs it.