BUSINESS LIFE INSURANCE

Section 101(j) Compliance

Strategic business life insurance solutions compliant with Tax Code Section 101(j). Includes key person insurance, buy-sell agreements, and executive benefits with proper documentation and consent.

Understanding Section 101(j)

Section 101(j) of the Internal Revenue Code governs how businesses can utilize life insurance while maintaining tax-exempt status for death benefits. Understanding these requirements is crucial for effective business planning.

Informed Consent Required
Written notice and consent from insured individuals before policy issuance.
Valid Insurable Interest
Demonstrable financial loss if the insured individual passes away.
Proper Ownership Structure
Business must be owner and beneficiary or have binding agreement for proceeds.
Billions
in BOLI Assets by Banks
Tax-Free Death Benefits:✓
Tax-Deferred Growth:✓
Asset Diversification:✓
Compliance:100%
Key Person Insurance

Protect against financial loss from losing critical employees while ensuring Section 101(j) compliance.

Buy-Sell Agreements

Facilitate smooth ownership transfer with life insurance funding while maintaining compliance.

Executive Benefits

Provide life insurance benefits as executive compensation while ensuring proper disclosure and consent.

Deferred Compensation

Support nonqualified deferred compensation plans with life insurance while maintaining compliance.

Why Banks Use Life Insurance

Banks hold billions in Bank-Owned Life Insurance (BOLI) for strategic financial advantages

Tax-free death benefits
Tax-deferred cash value growth
Asset/liability management
Non-correlated asset diversification
100% tax-deductible for companies
Executive compensation strategies
Regulatory capital benefits
Stable, predictable returns

Fortune 500 Companies Use Life Insurance

Major corporations leverage life insurance for tax benefits, employee benefits, and financial flexibility while maintaining full compliance with Section 101(j).

Comprehensive compliance documentation
Professional legal and tax review
Ongoing compliance monitoring
25+ Years
of Proven Strategies
100%
Compliant Solutions
Zero
Compliance Violations
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