4.5.4 Group term life insurance
An employer is able to exclude from an employee's compensation the cost of life insurance that is provided to an employee if the coverage meets the following criteria:
• The insurance provides a death benefit related to the employee that is not included in income.
• The coverage is provided to a group of employees. In some cases, the group must be at least ten employees.
• The insurance that is provided is based on a formula which prevents individual selection by the employee.
• The coverage is provided under a policy that the
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