Michael participates in the group insurance plan offered by his employer. He contributes $162 through payroll...

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Michael participates in the group insurance plan offered by his employer. He contributes $162 through payroll deduction. His tax rate is 45%. The annual premium for $45,000 of life insurance is $540, of which the employer pays 70 % ( i.e... $378). The employer adds a taxable benefit to Michael's annual income. On his death, what amount will Michael's estate receive? Michael participates in the group insurance plan offered by his employer. He contributes $162 through payroll deduction. His tax rate is 45%. The annual premium for $45,000 of life insurance is $540, of which the employer pays 70 % ( i.e... $378). The employer adds a taxable benefit to Michael's annual income. On his death, what amount will Michael's estate receive?

Answer rating: 100% (QA)

To calculate the amount Michaels estate will receive upon his death we need to consider the followin... View the full answer