In the case of a $75,000 group life insurance policy, how much would be taxable to the beneficiary?

In the context of group life insurance policies, the death benefit paid to beneficiaries is typically not subject to federal income tax. This means that when a beneficiary receives the full amount from a group life insurance policy, that amount is often tax-free.

In this scenario, with a $75,000 group life insurance policy, if the beneficiary were to receive the entire amount upon the insured's death, none of that would be taxable. Thus, the answer indicating 'none' as the taxable amount is consistent with tax regulations governing life insurance payouts. The distinction of group life insurance also supports the fact that such policies generally have favorable tax treatment, thereby reinforcing why beneficiaries can collect the full death benefit without any tax liabilities.

This is an important aspect to understand, as the tax-free nature of life insurance benefits is a significant advantage in financial planning and legacy considerations.