Yes, group life insurance premiums are taxable when they are paid by the employer on behalf of the employee. This is because the benefit premium is applicable to an employee’s income which affects their overall tax liabilities which are then taxed at the applicable rate. Any premiums that are paid by the employee are not taxable benefits. Just like the death benefit received from normal a individual life insurance policy, any payout received by a beneficiary from the passing of an employee is also tax-free.