Which of the following statements is correct regarding an employer's ability to deduct the premiums it pays for an employee's life insurance benefit?

a. Premiums are deductible as long as the business does not derive a direct benefit from the policy

b. Premiums can be deductible if the business does not receive more than 50% of the death benefit

c. An employer cannot ever deduct premiums it pays for an employee's life insurance benefit

d. Employers can always deduct the premiums it pays for an employee's life insurance benefit

Answer: B