Is key person Disability Insurance an allowable tax deduction?

Insurance Pickle.com

Key person disability insurance is designed for the same purpose. Complete control of the policy is given to the company as an owned asset. The business actually owns the policy, pays the premiums and is the beneficiary. Premium payments are not tax deductible; therefore benefits are tax free. Overhead expense is because though the benefits are taxable, they're paying overhead which is tax deductible. Consult a smart tax/insurance person to make sure you're getting the type of disability insurance to fit the need/want.

car253

Life insurance premiums Can be tax deductible. If the owner and beneficiary of the policy is the company. And, the company pays all the premiums.

Anonymous

They are only deductible to the business if they are part of the employee's taxable income. If they are part of the employee's taxable income, the employee determines the beneficiary and it won't be their employer. So to answer your question, YES, the premiums can be deductible, but there is little incentive to the employer for them to BE deductible.