In A Key Employee Life Insurance Policy The Third at Life

In A Key Employee Life Insurance Policy The Third. Accounting treatment in the books of creditor depends on the following two conditions: Should a key employee suffer permanent total disability, the loss to your business will.

The company pays the premiums, owns the policy and is the policy beneficiary. The older the key man the better price the company can receive on the now no longer needed coverage through a viatical settlement. A life insurance policy owned by a third party.

The person whose life is insured. Other forms of coli include key person life insurance that pays the company a death benefit upon the death of a key employee,. A premiums are deducted from the employee's salary b the employer is the owner/applicant of the policy c the beneficiary (the employer) typically receives the death benefit free of federal income tax d the employer has an insurable interest in the key employee Should a key employee suffer permanent total disability, the loss to your business will.