3822. How is the amount of taxable income determined when term insurance is provided under a qualified plan?polearyrcline202005-04-08T18:45:00Z2014-08-17T19:29:00Z2014-08-17T19:29:00Z1116665Hewlett-Packard Company51780142007-10-05T00:00:00ZTaxFactsDefaultArticleSite Map/Life Insurance/Income Taxation/Proceeds/Living/Disposition/Sale or Purchase of a Contract115140262-00-tf1.xml263.00;#2099;#0x010100C568DB52D9D0A14D9B2FDCC96666E9F2007948130EC3DB064584E219954237AF3900242457EFB8B24247815D688C526CD44D009C4E67E972694125ABDA91AC61F5E51FTax Facts 1If the owner of a life insurance or endowment contract sells the contract, such as in a life settlement, what are the income tax consequences to the seller?74200.0000000000TaxFactsDefaultArticleSBMEDIA\moss-admin2010-01-14T23:41:49Z3822. How is the amount of taxable income determined when term insurance is provided under a qualified plan?Where individual or group term life insurance is provided under a qualified plan, the cost of the entire amount of protection is taxable to employees. No part of the coverage of group term insurance is exempt under IRC Section 79 (Q 224).IRC Sec. 79(b)(3). Moreover, the cost of the insurance protection cannot be determined by use of the special group term rates that are applicable to taxing excess group term life insurance purchased directly by an employer.Treas. Regs. §§1.79-1(a)(3), 1.79-3(d)(3). It is not settled whether the taxable amount is the actual premium or the P.S. 58 (currently Table 2001) cost.