Life insurance paid from a corporation

[americantax]

An insurance agent asked about life insurance bought and paid by the a corporation, obviously it will cover the owner or owners but the question is how will the benefits be treated. As income to the business or does go the beneficiaries?

Thank you

[TAXNJ]

An insurance agent asked about life insurance bought and paid by the a corporation, obviously it will cover the owner or owners but the question is how will the benefits be treated. As income to the business or does go the beneficiaries?

Thank you

See TTB covering "Key person life insurance and Employer-owned life insurance contracts" starting at page 31-9 and "Employer-Provided Medical Coverage" page 29-3. It should provide more in depth information.