Life Insurance & Small Business Taxes

Offering term life insurance individually to your employees can be a smart, tax-friendly move.

When you provide life insurance benefits through an individual policy, you’re not just protecting your team — you’re investing in long-term loyalty. Employees value benefits that directly impact their families’ financial security, and life insurance does exactly that.

By using a Section 162 Executive Bonus Plan, your business can pay the premiums on each employee’s policy and take those payments as a tax-deductible business expense. The best part? The employee owns the policy, meaning they have full control over their coverage — including portability if they ever leave your company.

This strategy offers a win-win advantage:

• ·For employees: They receive valuable life insurance protection, potentially with cash value options if a permanent policy is used.
• ·For employers: You gain a powerful recruiting and retention tool that also provides a possible tax deduction.
• ·For both: It strengthens trust and demonstrates your commitment to their well-being. 

Reward your team. Protect your business. Save on taxes.

Sometimes the simplest benefits make the biggest impact.