Which group plan claim would likely involve the payment of federal estate taxes?

• A. Disability income
• B. Blanket health
• C. Accidental death
• D. Major medical

Answer: (C)

Life insurance death benefits can be part of a person’s gross estate for federal estate tax purposes if the policy is owned by the insured or if the estate is named as the beneficiary. An accidental death benefit in a group plan functions like a life insurance payout, so those proceeds can be included in the insured’s estate and potentially subject to estate taxes. The other options are health- or disability-related benefits that don’t transfer wealth through the decedent’s estate in the same way, so they aren’t typically tied to federal estate tax considerations.