Detailed Answer
Correct answer: (B)
Employer paid group life insurance premium up to $50,000 of coverage.
An employer may deduct group life premium up to $50,000 of coverage. Any coverage exceeding $50,000 is still deductible, but shows up on the employee's W-2 as income. Typically, the IRS will not allow both deductibility of premium and tax-free death benefit.