Tag Archives: Tax Advantages

Is Keyman Insurance Tax Deductible?

The most common question asked about keyman (also known a key person) life insurance is whether the premiums are a tax-deductible expense. Per U.S. Code § 7702, the answer is, unfortunately, no. A business cannot deduct premiums paid on a company-owned life insurance policy where the company is a direct or indirect beneficiary under the policy. If the policy covers […]

What is the difference between Immediate and Deferred Annuities?

Annuities come in two basic flavors. Everything else is just a variation of those two flavors. No, they are not vanilla or chocolate in flavor. Annuities are simply considered either immediate or deferred.   With an immediate annuity, the annuity buyer is expecting to receive an immediate income. An immediate annuity is the most basic vanilla type of annuity. You make one lump-sum […]