Permanent Benefit Law and Legal Definition

According to 26 CFR 1.79-0 [Title 26 -- Internal Revenue; Chapter I -- Internal Revenue Service, Department of the Treasury; Subchapter A -- Income Tax], Permanent benefit. a permanent benefit is "an economic value extending beyond one policy year (for example, a paid-up or cash surrender value) that is provided under a life insurance policy. However, the following features are not permanent benefits:

(a) A right to convert (or continue) life insurance after group life insurance coverage terminates;

(b) Any other feature that provides no economic benefit (other than current insurance protection) to the employee; or

(c) A feature under which term life insurance is provided at a level premium for a period of five years or less."