Under federal tax laws, which of the following statements is CORRECT about a contributory group Term Life plan that provides $50,000 of coverage to all eligible employees?

Employees generally cannot claim tax deductions for their contributions to group insurance premiums, including in contributory plans. The premiums deducted from an employee's paycheck are typically done on a pre-tax basis, reducing their taxable income indirectly without the need for separate deductions.

Under federal tax laws, the death benefit proceeds from a group Term Life plan are usually not taxable to the beneficiaries. This is a key advantage of these plans, providing financial support to the beneficiaries without creating additional tax burdens during an already difficult time.

Group Term Life insurance policies generally do not accumulate cash value like permanent life insurance policies such as Whole Life or Universal Life. These policies focus on providing a death benefit rather than investment or savings components, so they do not offer tax-sheltered equity accumulation.