What Is Life Insurance Imputed Income? 
Life insurance imputed income is the cost of offering someone life insurance coverage beyond $ 50,000 whenever there is a benefit provided by an employer to and employee . E.g. if you 're employer group life plan offers you $ 500,000 of term life insurance , than the cost of that insurance for $ 450,000 will be recognized by you as the covered insured as imputed income . It 's income that is reported to the IRS and income on which you must pay income taxes . 