Key Employee Plan-The Basics


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You will need to contact your insurance agent and your attorney.

First, the corporation purchases an insurance policy on the key employee's life. The corporation pays the premium, owns the policy, and is named as the beneficiary.

When the employee dies, the corporation receives the total death benefit income tax free. It's that simple!

Please note that this is only a simple discussion of a complex legal issue...For specific legal advice, please contact your own attorney.


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