Can a Group Life Insurance Policy Include an Owner-Employee?

Yes. The employer may be a sole proprietorship, partnership, or close corporation. Employees eligible for coverage may include sole proprietors, partners, and employee-shareholders. (Note, however, that tax rules are different for self-employed individuals and partners than for common law employees.) Some group contracts also cover employees of an employer’s subsidiary. Retired employees may also be included.

Reproduced with permission.  Copyright The National Underwriter Co. Division of ALM