Policy Exchange Riders and Key Employee Insurance
A policy exchange rider (often called a substituted insured rider or exchange of insureds option) provides that at the termination … Read more
Key Employee Life Insurance
Does a Business Have Insurable Interest in Key Employee Life Insurance?
Insurable interest is essentially the expectation of a financial benefit from the continued life of the proposed insured. The question … Read more
How Does a Business Account for Key Employee Life Insurance?
Accounting for key employee life insurance depends on the type of policy. Term insurance premium payments represent a pure current … Read more
Is There a way Around Nondeductability of Premiums with Key Employee Life Insurance?
For a way around nondeductability of premiums, as a practical matter, the answer is no. This limitation extends to both … Read more
How Much Insurance Should a Business Purchase on its Key Employee?
A common method of calculating the economic effect of the loss of a key employee is the discount approach. This … Read more
Transfer for Value Issues of Key Employee Life Insurance
Where a key employee policy – or an interest in a key employee policy – has been transferred for any … Read more
Tax Implications of Key Employee Life Insurance
Premiums paid by the corporation are not tax deductible. Premiums paid by the corporation will not be taxable to the … Read more
The Requirements of Key Employee Life Insurance
Key employee insurance should be owned by and payable to the corporation, which should also pay the premiums. As will … Read more
Advantages and Disadvantages of Key Employee Life Insurance
There are a number of advantages of key employee life insurance. Understanding them can help you make a much wiser … Read more
When to use Key Employee Life Insurance
Key employee life insurance is an important piece of employee benefits that can protect you and your key employees. Understanding … Read more