What does Section 125 Plan mean? Read on to discover the definition & meaning of the term Section 125 Plan - to help you better understand the language used in insurance policies.
Section 125 Plan
The Section 125 Plan allows funds to be deducted from an employee's pre-tax income to pay for benefits, such as health insurance. These plans are regulated by the IRS and allow the employer to save on expenses while also increasing the take-home pay for employees.
More Insurance Terms And Definitions
The Merriam-Webster Dictionary defines insurance as:
b: Coverage by contract whereby one party undertakes to indemnify or guarantee another against loss by a specified contingency or peril.
c: The sum for which something is insured.
We hope the you have a better understanding of the meaning of Section 125 Plan. If you are looking for the meanings of other important insurance terms and their definitions, just click on the letter below to find the words & concepts you are looking for: