Home
Feedback
Ask a Question
Instant Quotes

Is it tax deductible?

Posted in Key Man Life Insurance about 1 year ago, 2 replies

Is Key Man Insurance tax deductible for a business?
Avatar_thumbnail
submitted by Beebe in Atlanta, GA
Key man insurance is typically owned by the company, with the company as the beneficiary of the policy. In most cases, this is done with an equity building whole life policy. The company can tax deduct the premiums as long as they are charged to the key man as income, and he pays income tax on it. In order to make this better for the employee, companies typically offer the cash value as a retirement benefit for the key employee if he stays at the company to retirement.

If you have further questions, you can email me at dhorsey@myclearview.com

David J. Horsey Jr., CLTC
Clearview Insurance & Financial Services
Avatar_thumbnail
submitted by David Horsey in Springfield, MO @ June 15, 2009 - 03:59 PM
Reply
In most every case, the premiums for key man life insurance policies should not be deducted as a business expense as the proceeds are generally payable to the company tax free. There may be exception so please consult your CPA for specific tax guidance. For more information see, keymaninsurance.net.
Avatar_thumbnail
submitted by Michael in Pensacola Florida @ June 30, 2009 - 07:02 PM
Reply

Write a Reply


Your Name

Your Location in The World

Example: Seattle, WA
Optional: You may login or register for email notifications and to add a profile pic.

Show HTML Controls

I have photo(s) to upload with this reply.

Please Confirm You are Human

simple_captcha.jpg
(type the code from the image)