Retirement and Other Insurance Concepts
Why are corporate premiums paid for key-person life insurance non-deductible as business expenses for income tax purposes?
Answer and explanation
Answer: B. Under IRC rules, premiums paid for key-person insurance are non-deductible because death benefit proceeds received by the business are income-tax-free.Source: NAIC Business Insurance Guide — PDF page 6, Key Person Tax
More retirement and other insurance concepts questions
- Under Texas Insurance Code § 1251.001 & § 1131.051, what minimum number of employees must participate in an employer-sponsored noncontributory group life insurance plan?
- Under the human life value approach, what is being measured?
- Under TIC § 1131.051, what minimum participation requirement applies to a CONTRIBUTORY group life insurance plan where employees pay part of the premium?
- What conditions must be met for a Roth IRA distribution of earnings to qualify as 100% tax-free?
- What conversion right do covered children have when reaching the age limit under a family rider?
- What disclosure document must be delivered to a consumer prior to or at the time of purchase of a variable annuity under federal securities law?
590 Texas questions like this one.
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