<p>Piggle’ s mom posting</p>
<p>Anyone familiar with section 79 plans ?
Is it worth exploring or just waste of time ,in regards to tax benefit ?</p>
<p>In terms of what? As an Employee or Employer?</p>
<p>
</p>
<p>For employee, why not? The premium is free anyway.</p>
<p>piggle’s mom replying.</p>
<p>Piggle’s dad is a senior partner in medical group.Someone recommended the plan to their group. - the money will be coming out of the group’s income.
They are hesitating whether to invest that extra money into something else ( buying instead of renting office buildings) or take part in section 79.</p>
<p>Normally it is not worth the expense for a small business to offer that. For a large corporation like Ford, GE etc. it is a gesture to give the empolyee a peace of mind, so they can work at ease. Its another way to retain employees in a large corporation, however small effect it will be.</p>
<p>JMO and FWIW</p>
<p>Thanks for the reply
The group consits of 11 Physicians . As the founding partner piggle’s dad wants to the right thing . I don’t think this plan is for them.
I thought the agent & financial planner were too eager to sell the plan.</p>
<p>The tax benefits would be small, $50K of term insurance is pretty cheap. At my company $50K of life insurance costs less than $200/year in my age bracket.</p>
<p>Unless you are uninsurable or smoke, my research has shown that it is almost certainly cheaper to get your own policy rather than buy through the company. So I have only the minimum offered.</p>
<p>Rates for such a small group might be higher.</p>
<p>They would probably be better server and get more benefit for the money spent to buy their own individual life insurance policies than a small group plan, unless some of them are uninsurable.</p>
<p>I would think they have some sort of partnership buy-sell agreement which could be funded by life insurance, but much more than $50k.</p>
<p>Piggle’s mom replying.</p>
<p>All the 5 senior partners have life insurance ( independ). The rest - he does not know.
The practice has buy- sell agreement in place.</p>
<p>It’s a nice perk, however, the problem is too many people have these and think they have enough life insurance. $50,000 isn’t enough for anyone. I would sponsor days for a financial planner to meet with employees to talk about appropriate levels of life insurance and I would make sure that the practice offers fantastic disability plans, both short and long term plans. Those will be much more valuable to your employees in the long run. If they want to offer another benefit plan, I would suggest getting long term care plans for everyone. The tax benefits to the practice can be amazing and its a somewhat unique benefit.</p>
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