What type of insurance policy is generally tax-deductible for an employer?

Group life insurance is typically the type of insurance policy that is tax-deductible for an employer. This deduction is possible because group life insurance is set up to benefit multiple employees, and premiums paid by the employer are considered a business expense. This means that the employer can deduct these premium payments on their tax return, which can be a significant financial advantage.

In contrast, individual life insurance premiums are usually not tax-deductible for employers because the policy is tied to a single employee rather than a group. Accidental death and dismemberment insurance, while it may have different tax implications, does not offer the same level of tax deductibility as group life coverage. Short-term disability insurance typically is provided for employee benefits, but the deductibility can vary based on how it is structured and the specific circumstances of the employer and employee contributions.