For which type of life coverage can an employer deduct premium payments as an ordinary business expense?

An employer can deduct premium payments for group life insurance as an ordinary business expense because group life insurance is provided to a group of employees under a single policy. This type of coverage is often seen as part of employee benefits, and employers can deduct these costs from their taxable income. The deduction is permissible because the premiums are paid for the benefit of the employees as a form of compensation.

In contrast, premium payments for individual policies, such as whole life, universal life, and term life coverage, are typically not deductible for employers since those policies are considered personal and geared toward individual rather than collective benefits. Thus, group life stands out as the appropriate type for which employer premium payments can be deducted.