Which of the following is correct concerning the taxation of a Key Person Life Insurance Policy premiums and death benefit?

Which of the following is correct concerning the taxation of a Key Person Life Insurance Policy premiums and death benefit?



a. Premiums are tax deductible as a business expense and the death benefit is taxable to the company
b. Premiums are tax deductible as a business expense and the death benefit is not taxable to the company
c. Premiums are not deductible as a business expense and the death benefit is taxable to the company
d. Premiums are not deductible as a business expense and the death benefit is not taxable to the company


Answer: d

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