Employer-Paid Life Policy

[maxfischer75]

My employer pays the premiums for a life insurance policy with a benefit at 3 times my salary. How do I handle this on my ch 7 petition?

[newbie2]

My employer pays the premiums for a life insurance policy with a benefit at 3 times my salary. How do I handle this on my ch 7 petition?

It sounds like a term life policy (pays when you die). If so there is not usually a cash out option to those, so there is no money that the trustee can take.

[AngelinaCatHub]

It is not an asset. Insurance or proceeds from insurance is exempt anyway. Don't even list it. It is a non issue. You don't list coffee breaks, or a company picnic, so the policy is a benefit like health insurance. A non issue. 'Hub

[justbroke]

However, if it's worth more than a certain amount, the "benefit" is taxable. That is done by imputing the income. It should already be included in your gross income.

Since the policy is owned by your employer, you need not list it.

[Fallonedward]

My Hubby had a Employer-Paid Life Policy but now that he is unemployed can we purchase a life insurance policy for him or is that a no no before you declare?

[justbroke]

Insurance is okay. Whether or not it's an allowable expense, is another thing. Also, if the insurance policy is whole life and has a present cash value, the Trustee might be interested in it if you can't exempt it.