https://www.taxtmi.com/article/detailed?id=1966 Premiums for Keyman insurance, when linked to the insured's services, are allowable business expenditures; proceeds from such policies are excluded from life-insurance exemption and taxable as business income if received by the employer or as salary-equivalent if received by the insured, with residual receipts taxable as income from other sources. The statutory definition of Keyman is broad, and administrative guidance and judicial authority support allowability of premiums and taxation of policy proceeds. Keyman policies also serve financing and liquidity functions through surrender values and loans, but treating premiums as capital investment carries tax risks. en-us Tue, 11 Dec 2012 17:17:47 +0530 Tue, 11 Dec 2012 17:17:47 +0530 TaxTMI RSS Generator https://www.taxtmi.com/article/detailed?id=1966 Premiums for Keyman insurance, when linked to the insured's services, are allowable business expenditures; proceeds from such policies are excluded from life-insurance exemption and taxable as business income if received by the employer or as salary-equivalent if received by the insured, with residual receipts taxable as income from other sources. The statutory definition of Keyman is broad, and administrative guidance and judicial authority support allowability of premiums and taxation of policy proceeds. Keyman policies also serve financing and liquidity functions through surrender values and loans, but treating premiums as capital investment carries tax risks. Articles Income Tax Tue, 11 Dec 2012 17:17:47 +0530 https://www.taxtmi.com/article/detailed?id=1966