Beware of the tax-traps lurking on keyman, key person life insurance.
Are Keyman Insurance Death Benefits Tax-Free?
Key person life insurance death benefits are tax-free if certain steps are taken prior to issuance of the policy & certain conditions have been met at death. Otherwise, the death benefits in excess of the premiums paid are taxed as ordinary income.
Read more about Employer Owned Life Insurance, (EOLI) aka Company Owned Life Insurance (COLI)
The steps and save harbor provisions can be found at //www.get-term-insurance-quotes-now.com/key-person-life-insurance.html
