Life Insurance Premiums Taxable
are life insurance proceeds taxable if premiums are paid as an employee benefit?
It sounds like you’re talking about a split-dollar or 162 bonus plan. As long as it is not in a tax-qualified plan, the death benefit avoids income taxation. Of course, you should see an accountant for advice that applies to your specific situation, including if your estate might be subject to taxation (this applies to wealthier folks).
