Insurance Glossary

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Insurance Term - Premium Only Plan (POP)

The easiest and simplest type of Section 125 plan. Once established, it requires little maintenance and works by making one simple adjustment in the payroll process: employees pay their portion of insurance premiums on a pre-tax basis rather than a post-tax basis. The employer offers a favorable tax treatment on benefits already offered. To make this benefit available, a qualified health insurance plan must be in place.

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