The premiums for business overhead expense plans are deductible regardless of the type of business entity involved. The benefits received are taxable, but the business expenses which they cover are tax deductible.

      Taxation
Premium Payor Policy Owner Benefits Payable to Premiums Benefits
Business Sole Proprietor Sole Proprietor Deductible

Revenue Ruling

55-264

 Reported as Income; IRC Sec. 105(d)
Partnership Partnership Partnership  
Corporation Corporation Corporation  

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Ohio National is not affiliated with, nor does it endorse or sponsor, any particular prospecting, marketing or selling system.

Businesses should consult with their tax and legal advisors when establishing a formal plan.

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