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*Premium Only Plans* Most health insurance policies and some life insurance policies are eligible for inclusion in a Section 125 Plan. Only group term life insurance is eligible and only the portion of the premium for coverage up to $50,000 can be included. Premiums for any excess coverage must be paid with taxable dollars. Under Section 125 rules, employees cannot change their policies during the term of the plan without an approval from the administrator. Some examples* of insurance policies that are eligible for your Section 125 Plan include: Health Insurance Dental Insurance Cancer Insurance Up To $50,000 Group Term Life Insurance On Employees Only Hospital Indemnity Insurance Accident Insurance Heart Attack & Stroke Insurance ICU/CCU Insurance Accidental Death and Dismemberment
*Third Party Insurance* (Individual Health Insurance Policies) Employees, acting on their own, may obtain health insurance policies for themselves and, if they choose, their dependents. The premiums for these policies may be paid pre-tax through the employer’s Section 125 Cafeteria Plan. The employee may pay these premiums and be reimbursed through a salary reduction election that is irrevocable through the end of the plan year. These insurance policies should be “owned” by the employee due to the fact that all direct participants of a Section 125 Cafeteria Plan must be employees. Even so, dependents may receive benefits from the employee’s policy. Contact Select Data Service Administrators toll free at 888-698-1429 or info@selectdataservice.com for more information about eligible insurance under a Section 125 cafeteria plans. * Information courtesy of USAble Life Insurance Company