Is your employer-owned life insurance policy compliant with Internal Revenue Code Section 101(j)? If not, any death proceeds paid to your company from an employer-owned life insurance (EOLI) policy may be considered taxable income to your company.

Typically, death benefits paid from a life insurance policy subject to Section 101(j) are taxable when received. However, this is certainly not the intended or preferred outcome when acquiring a life insurance policy.

The good news is that there are some exceptions and procedural steps to follow to not only be compliant with the rule, but also to remain compliant in the future and protect this valuable income tax-favored benefit. Doeren Mayhew Insurance Group shares insight into these qualifying exceptions and more on EOLI in their latest article.