Description: This paper was presented at the 1955 Society of Actuaries Eastern Spring Meeting, held March 24-25 in New York City. Noting that traditionally, group life insurance has been financed on a yearly renewable term basis, the author discusses the reasons for development of group permanent life insurance and the different funding methods. The author also presents certain analogies with the funding of pension plans, and discusses employee taxability issues under current tax law for the various funding methods. From Transactions of Society of Actuaries 1955 Volume 7, Number 18.