What Does Section 79 Plan Mean?
A section 79 plan is a type of life insurance that is offered as a benefit to employees. This type of life insurance coverage is desirable because the premiums are entirely tax deductible for the business as long as the value of the insurance is less than $50,000 per employee.
Insuranceopedia Explains Section 79 Plan
Essentially, section 79 plans are a great way for employers to offer a term life insurance plan to their employees. Plans such as these can help companies attract better talent and improve their turn-over rates.
In many cases, it is also possible to offer permanent life insurance through a section 79 plan.
Section 79 plans get their name from the section of the IRS code that deals with them.