employee benefits 12

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(a) Jill is a 27-year-old worker at a technology firm. Her company provides a group life term insurance benefit of $150,000, and the company pays the entire premium. Using the Uniform Premium Table, what is the taxable monthly cost of her life insurance benefit?

(b) Jill’s boss, Susan, is 62 years old, and has an insurance benefit of $150,000 as well. What is the taxable monthly cost of her life insurance benefit?

(c) Whose benefit costs more per month? Why?

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