It's Not a 'windfall'. It's how Key-man Policies Work.

[myinsurebiz]

The Virtual Assistant | The Complete Financial Advisor Toolbox

For $23.95/month, it would be a great resource for you to study up with high quality and reliable information. It might even help you avoid an E&O claim.

Thanks . . .

Yea - Google sent me to termlife2go.com - lots of basic info there . . .

In key man - the premiums aren't tax deductible and the taxation of the death benefit may or may not be taxable AND the business receives the benefits - right?

What about Business Partner Life Insurance? They premiums are still not deductible - correct? The "Partner" gets the death benefit - correct? They would receive them tax free also - correct?

 

[goillini52]

Well - now that you mention Key Man . . .

Question:

JD and DHK own ABC Gadgets, Inc an up and coming Gadget company with 10 Million in annual sales and 10 employees. JD is COO and DHK is CEO and Chairman.

They are each married with 2 kids each.

They each want $1million policy on each other. What should I write them? What about the spouses and kids?

Not to each other I hope! That would be icky!