Can My Company Pay For My Life Insurance? 
Your company can pay for your life insurance , but if they provide more than $ 50.000 of coverage , you will be taxed on the cost of the premium for the portion above $ 50,000 . Example : Your company pays $ 1,500 a year to provide you with $ 100,000 of life insurance . Since they are paying for $ 50,000 more coverage than allowed , you will have to pay taxes on 1/2 half of the premium , or $ 750 . If you are in the 25 % tax bracket , you would be paying $ 187.50 in taxes . 