Life insurance premium payments on employees are tax deductible expenses. Life insurance payouts are not considered income and are tax free. It used to make m

Life insurance premium payments on employees are tax deductible expenses. Life insurance payouts are not considered income and are tax free. It used to make more sense to do this when corporate income taxes were higher since you converted potentially taxable income into a non-taxable expense, that was later collected as an untaxable redemption, minus the insurance company's overheads.