taxable death benefit if premiums deducted
As long as your employer is not the direct beneficiary of the policy, you have to declare such premium payments as taxable income, with some exceptions. A policy with a face value, or the amount paid out on death, that does not exceed $50,000 is counted as a non-taxable fringe benefit. If the employer provided policy exceeds a $50,000 face value, the portion of the premium going towards the face value over $50,000 must be declared on your tax return.