Executive life insurance for your key people.

Individual life insurance a business provides for selected people, such as owners, executives or key employees. It is separate from group life, which is offered to eligible employees under a group arrangement.

Group life covers eligible employees under one group arrangement. Executive coverage is an individual policy for each person you choose, so each person applies and the insurance company decides coverage and price for them.

It depends on how the arrangement is set up. The employee may own the policy, or the business may own it. Ownership affects who controls the policy and how it is taxed, so set it up with your tax advisor.

Federal law sets three steps before the policy is issued: the employee is told in writing that the employer intends to insure their life and the maximum amount, the employee agrees in writing to be insured and that coverage may continue after they leave, and the employee is told in writing that the employer will be a beneficiary. IRS Form 8925 is used to report the number of employees covered by employer-owned life insurance and the amount in force.