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I use term for Key-man, as no ones gonna work anywhere permanently. Sell whole to the person for their spouse and kids, but key-man is term for me all the way. Larger face amount lower cost and a finite conclusion.
Don't be an order taker, I take annual contribution to the companies bottom line, recruiting costs, and the annual salary of the individual. I ask the decision maker how soon they can get an equitable replacement... after they answer, ask if they are sure. Once you get that down, come up with a number and produce multiple ends of the spectrum in quotes... what they asked for in your fact find, and up to 5x what they asked for in varying term limits. Lay it out n let em pick.
Their need, their data, their choice, your sale (because no one will beat your counsel or price), your fat paycheck.
Question: Company buys a no lapse UL for a key man policy on a 45 year old with agreement to give policy to insured upon retirement at 65. What determine the taxability of the benefit conferred upon that individual when they receive the policy and continue the premiums at retirement?
The premiums would be deducted by the employer and considered a taxable benefit each year to the key employee who would pay income taxes on that annual benefit. (It's also possible that the company could pay the taxes on that benefit as well for a "double" 162 bonus plan.)