Avoid Unnecessary Taxation
A key benefit of life insurance is that the death benefit is typically paid income tax free. However, under a provision added to the tax code in 2006, life insurance purchased by an employer after August 17, 2006 (or materially changed after that date) does not automatically qualify for tax-free status.
Now is the time to review your client’s business owned life policies, Buy-Sell and Key Man and make sure they are compliant with the IRS.
Employer is the Beneficiary
