{"id":6238,"date":"2026-10-27T08:15:03","date_gmt":"2026-10-27T08:15:03","guid":{"rendered":"https:\/\/nrcpas.com\/life-insurance-guides\/key-person-insurance\/key-person-insurance-foreign-owned-us-company\/"},"modified":"2026-10-30T02:38:31","modified_gmt":"2026-10-30T02:38:31","slug":"key-person-insurance-foreign-owned-us-company","status":"publish","type":"page","link":"https:\/\/nrcpas.com\/life-insurance-guides\/key-person-insurance\/key-person-insurance-foreign-owned-us-company\/","title":{"rendered":"Key Person Insurance for Foreign-Owned US Companies"},"content":{"rendered":"\n<div class=\"wp-block-cover alignfull is-dark chg-hero\" style=\"min-height:460px;aspect-ratio:unset;\"><span aria-hidden=\"true\" class=\"wp-block-cover__background has-background-dim-80 has-background-dim wp-block-cover__gradient-background has-background-gradient\" style=\"background:linear-gradient(90deg,rgba(32,36,46,1) 0%,rgba(32,36,46,1) 55%,rgba(32,36,46,0.7) 100%)\"><\/span><img class=\"wp-block-cover__image-background wp-image-6235\" alt=\"A senior operations manager reviews production schedules at a workstation in a busy manufacturing facility, with colleagues working behind him.\" src=\"https:\/\/nrcpas.com\/life-insurance-guides\/wp-content\/uploads\/2026\/10\/a-senior-operations-manager-reviews-production-schedules-at-photo-28.jpg\" width=\"1376\" height=\"768\" srcset=\"https:\/\/nrcpas.com\/life-insurance-guides\/wp-content\/uploads\/2026\/10\/a-senior-operations-manager-reviews-production-schedules-at-photo-28-150x150.jpg 150w, https:\/\/nrcpas.com\/life-insurance-guides\/wp-content\/uploads\/2026\/10\/a-senior-operations-manager-reviews-production-schedules-at-photo-28-300x167.jpg 300w, https:\/\/nrcpas.com\/life-insurance-guides\/wp-content\/uploads\/2026\/10\/a-senior-operations-manager-reviews-production-schedules-at-photo-28-768x429.jpg 768w, https:\/\/nrcpas.com\/life-insurance-guides\/wp-content\/uploads\/2026\/10\/a-senior-operations-manager-reviews-production-schedules-at-photo-28-1024x572.jpg 1024w, https:\/\/nrcpas.com\/life-insurance-guides\/wp-content\/uploads\/2026\/10\/a-senior-operations-manager-reviews-production-schedules-at-photo-28.jpg 1376w\" sizes=\"(max-width: 825px) 825px, 100vw\" fetchpriority=\"high\" decoding=\"async\"\/><div class=\"wp-block-cover__inner-container has-global-padding is-layout-constrained wp-block-cover-is-layout-constrained\">\n<p class=\"chg-eyebrow has-base-color has-text-color wp-block-paragraph\" style=\"text-shadow:0 1px 3px rgba(0,0,0,0.6),0 0 18px rgba(0,0,0,0.35)\">Key Person Insurance | Miami, Florida<\/p><h1 class=\"wp-block-heading has-base-color has-text-color\" style=\"text-shadow:0 1px 3px rgba(0,0,0,0.6),0 0 18px rgba(0,0,0,0.35)\">Key Person Insurance for Foreign-Owned US Companies<\/h1><p class=\"has-base-color has-text-color wp-block-paragraph\" style=\"font-size:clamp(0.875rem, 0.875rem + ((1vw - 0.2rem) * 0.625), 1.25rem);text-shadow:0 1px 3px rgba(0,0,0,0.6),0 0 18px rgba(0,0,0,0.35)\">Protect your U.S. company&#x27;s continuity if an owner or key employee is no longer there. NR CPAs &amp; Business Advisors reviews the coverage with a CPA&#x27;s view of tax and cash flow, and insurance is offered through our licensed agent.<\/p><div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\"><div class=\"wp-block-button chg-cta chg-cta-call\"><a class=\"wp-block-button__link wp-element-button\" href=\"tel:+19542316613\">Call us today for a coverage review<\/a><\/div><div class=\"wp-block-button chg-cta chg-cta-form\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/nrcpas.com\/contact\">Call us today for a coverage review<\/a><\/div><\/div>\n<\/div><\/div>\n\n\n<p class=\"wp-block-paragraph\" style=\"font-size:0.85rem;color:#6b7280;margin-bottom:1.5rem\">By Nischay Rawal \u00b7 Published October 27, 2026<\/p>\n\n<article lang=\"en\">\n\n\n<p>Key person insurance for a foreign-owned company is a business-owned life insurance policy on someone the company relies on. Ownership structure decides who owns the policy, who pays the premiums, who receives the benefit, and who signs the application.<\/p>\n<p>NR CPAs &amp; Business Advisors is a Miami CPA firm. We help owners across the United States, including Indian-American and NRI owners in Florida, review life insurance with a CPA&#8217;s view of tax and cash flow. Insurance is offered by Nischay Rawal, a licensed insurance agent, separately from the accounting practice.<\/p>\n<h2>What Key Person Insurance Is and Who It Fits<\/h2>\n<p><a href=\"\/life-insurance-guides\/key-person-insurance\/\">Key person insurance<\/a> is life insurance a business buys on a person whose death would cause it financial harm. A key person can be an owner, director, officer, partner, manager, or key employee, meaning an individual whose position or compensation is described in s. 101(j)(2)(A)(ii) of the Internal Revenue Code of 1986.<\/p>\n<p>The company pays the premiums and receives the death benefit. The <a href=\"https:\/\/www.iii.org\/publication\/insuring-your-business-small-business-owners-guide-to-insurance\/specific-coverages\/life-insurance-for-key-employees\">Insurance Information Institute<\/a> explains that this coverage compensates a business for financial losses caused by the death or disability of a key employee.<\/p>\n<p>Foreign-owned U.S. companies often ask about this coverage. Common cases include:<\/p>\n<ul>\n<li>A U.S. subsidiary of an overseas parent company<\/li>\n<li>A U.S. company with foreign shareholders<\/li>\n<li>A U.S. LLC with a foreign member<\/li>\n<li>A company whose key person is an NRI or non-citizen<\/li>\n<\/ul>\n<p>The coverage is usually written as a whole life insurance policy or a term life insurance policy. It is insurance, not an investment or a savings plan. Each insurer sets its own rules for who it will insure.<\/p>\n\n<figure class=\"wp-block-image size-large has-custom-border\"><img decoding=\"async\" src=\"https:\/\/nrcpas.com\/life-insurance-guides\/wp-content\/uploads\/2026\/10\/older-man-with-glasses-leans-back-in-an-office-chair-at-a-de-photo.jpg\" alt=\"Older man with glasses leans back in an office chair at a desk with a laptop, while coworkers collaborate in an industrial-style workspace.\" style=\"border-radius:8px;width:100%;aspect-ratio:16\/9;object-fit:cover\"\/><\/figure>\n\n<div class=\"cta-dose-mid wp-block-group has-base-color has-accent-background-color has-text-color has-background has-global-padding is-layout-constrained wp-container-core-group-is-layout-32197852 wp-block-group-is-layout-constrained\" style=\"background-color:var(--wp--preset--color--accent,#20242e);color:var(--wp--preset--color--base,#ffffff);border-radius:8px;padding-top:1.5rem;padding-bottom:1.5rem;padding-left:1.5rem;padding-right:1.5rem;border-left:6px solid var(--wp--preset--color--cta,currentColor);box-shadow:0 2px 10px rgba(0,0,0,0.18)\">\n<h3 class=\"wp-block-heading has-base-color has-text-color\">Not sure what your next step is?<\/h3><p class=\"wp-block-paragraph\">Talk it through with our team &#8212; we can walk you through how a situation like yours is usually handled and what your options are.<\/p><div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\"><div class=\"wp-block-button chg-cta-call\"><a class=\"wp-block-button__link wp-element-button\" href=\"tel:+13058723096\">Schedule a coverage review<\/a><\/div><div class=\"wp-block-button chg-cta-form\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/nrcpas.com\/contact\">Schedule a coverage review<\/a><\/div><\/div>\n<\/div>\n<h2>Insurable Interest: Why the Company Can Usually Insure a Key Person<\/h2>\n<p>A company can usually insure a key person when it has an insurable interest in that person&#8217;s life. For a business, insurable interest in the life of a director, officer, or employee is a matter of state insurance law; in Florida, it is addressed by <a href=\"https:\/\/www.leg.state.fl.us\/statutes\/index.cfm?App_mode=Display_Statute&amp;URL=0600-0699\/0627\/Sections\/0627.404.html\">Fla. Stat. \u00a7 627.404(2)(b)<\/a>9. <a href=\"https:\/\/www.law.cornell.edu\/uscode\/text\/26\/101\">IRC \u00a7 101<\/a> also has a separate rule, titled &#8216;Exception for business-related policies,&#8217; within its provisions on accelerated death benefits. That rule does not define insurable interest, and it does not remove the general death-benefit exclusion in <a href=\"https:\/\/www.law.cornell.edu\/uscode\/text\/26\/101\">\u00a7 101(a)(1)<\/a>. Florida law sets specific conditions for businesses. Florida law sets specific conditions for businesses.<\/p>\n<p>Under <a href=\"https:\/\/www.leg.state.fl.us\/statutes\/index.cfm?App_mode=Display_Statute&amp;URL=0600-0699\/0627\/Sections\/0627.404.html\">Fla. Stat. \u00a7 627.404<\/a>, a business entity can include a corporation, partnership, LLC, or business trust. The business may insure its owners, directors, officers, partners, and managers, or its key employees or key persons, and those of any affiliate or subsidiary, if written consent is obtained before the policy is bought. The key person must consent in writing before the policy is bought.<\/p>\n<p>If a key person refuses consent, the company may not retaliate or take adverse action against that person.<\/p>\n<p>Typical financial stakes include lost revenue, lender or contract exposure, and the cost of finding a replacement. Keep records that show these stakes, because an insurer may ask for them.<\/p>\n<p>A personal policy works differently. A policy on another person&#8217;s life must pay the benefit to the insured, the insured&#8217;s personal representative, or someone with an insurable interest when the contract is made. The statute says that interest need not last after coverage begins.<\/p>\n<h2>How Foreign Ownership Changes Who Owns, Pays and Receives the Policy<\/h2>\n<p>In most foreign-owned structures, the U.S. company owns the policy, pays the premiums, and receives the death benefit. The company&#8217;s governing documents still control the final roles.<\/p>\n<ul>\n<li><strong>U.S. corporation owned by a foreign parent.<\/strong> The company usually owns and pays for the policy. The parent may need to approve the purchase under its own governance.<\/li>\n<li><strong>U.S. company with foreign shareholders.<\/strong> Shareholder agreements set who votes and decides. Under <a href=\"https:\/\/www.leg.state.fl.us\/statutes\/index.cfm?App_mode=Display_Statute&amp;URL=0600-0699\/0607\/Sections\/0607.0732.html\">Fla. Stat. \u00a7 607.0732<\/a>, the existence of a shareholder agreement authorized by that section, such as one that eliminates or limits the board of directors, must be noted conspicuously on share certificates or the information statement for uncertified shares.<\/li>\n<li>Policy roles should match the operating agreement.<\/li>\n<\/ul>\n<p>Check the death benefit path before you apply. The business should receive the benefit if the policy is meant to fund the company. Ownership changes later can affect the policy, so review them before any transfer.<\/p>\n<h2>Who Signs the Application and What Each Signer Confirms<\/h2>\n<p>The company usually signs as applicant and owner, through an officer authorized under its own documents. The key person signs consent and health answers personally.<\/p>\n<ul>\n<li><strong>Applicant and owner:<\/strong> the company, through an authorized officer.<\/li>\n<li><strong>Insured key person:<\/strong> the person whose life is covered by the contract. Florida law requires this person&#8217;s written consent.<\/li>\n<li><strong>Beneficiary:<\/strong> usually the company, as named on the application.<\/li>\n<\/ul>\n<p>This requirement does not apply to a policy of prepaid funeral contract, group life insurance, or group or blanket accident, health, or disability insurance. This applies on or before the contract is made. Group life insurance, prepaid funeral contracts, and group or blanket accident, health, or disability insurance are exceptions to the consent rule, per <a href=\"https:\/\/www.leg.state.fl.us\/statutes\/index.cfm?App_mode=Display_Statute&amp;URL=0600-0699\/0627\/Sections\/0627.404.html\">Fla. Stat. \u00a7 627.404<\/a>. <a href=\"https:\/\/www.leg.state.fl.us\/statutes\/index.cfm?App_mode=Display_Statute&amp;URL=0600-0699\/0627\/Sections\/0627.404.html\">Fla. Stat. \u00a7 627.404<\/a> reads: &#8220;(5) A contract of insurance upon a person, other than a policy of prepaid funeral contract; group life insurance; or group or blanket accident, health, or disability insurance, may not be carried out unless, on or before the time of entering into such contract, the person insured, having legal capacity to contract, applies for or consents in writing to the contract and its terms, except that any person having an insurable interest in the life of a minor younger than 15 years of age or any person upon whom a minor younger than 15 years of age is dependent for support and maintenance may obtain a policy of insurance on the minor.&#8221;<\/p>\n<p>Expect the insurer to ask for corporate resolutions, ownership information, and identification. Each insurer sets its own list, so ask for it early. The insured should review every health question personally before signing.<\/p>\n\n<div class=\"cta-dose-mid wp-block-group has-base-color has-accent-background-color has-text-color has-background has-global-padding is-layout-constrained wp-container-core-group-is-layout-32197852 wp-block-group-is-layout-constrained\" style=\"background-color:var(--wp--preset--color--accent,#20242e);color:var(--wp--preset--color--base,#ffffff);border-radius:8px;padding-top:1.5rem;padding-bottom:1.5rem;padding-left:1.5rem;padding-right:1.5rem;border-left:6px solid var(--wp--preset--color--cta,currentColor);box-shadow:0 2px 10px rgba(0,0,0,0.18)\">\n<h3 class=\"wp-block-heading has-base-color has-text-color\">Have questions about what happened?<\/h3><p class=\"wp-block-paragraph\">Ask our team directly. Tell us what you are dealing with and we will explain how the process works from here.<\/p><div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\"><div class=\"wp-block-button chg-cta-call\"><a class=\"wp-block-button__link wp-element-button\" href=\"tel:+13058723096\">Talk to our team<\/a><\/div><div class=\"wp-block-button chg-cta-form\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/nrcpas.com\/contact\">Talk to our team<\/a><\/div><\/div>\n<\/div>\n<h2>Underwriting for Foreign-National and NRI Key People<\/h2>\n<p>Underwriting is the insurer&#8217;s review of health, age, occupation, and other facts. It decides whether to issue a policy and on what terms.<\/p>\n<p>Citizenship, country of residence, and travel history can change the questions asked and the paperwork requested. They can also affect which insurers will consider the case.<\/p>\n<p>A fully underwritten policy includes health questions. Issue and terms may depend on insurability. A key person who lives abroad may need medical records from foreign providers, which can lengthen the timeline.<\/p>\n<p>Start the paperwork early, especially when a lender or co-owner is waiting.<\/p>\n<h2>Tax Treatment: What a CPA Reviews With the Coverage Decision<\/h2>\n<p>Death benefits are generally not taxable income under federal law, but exceptions and business rules add conditions.<\/p>\n<p>Under <a href=\"https:\/\/www.law.cornell.edu\/uscode\/text\/26\/101\">26 U.S.C. \u00a7 101<\/a>, amounts paid because of the insured&#8217;s death are generally excluded from gross income. Interest on proceeds the insurer holds can be taxable.<\/p>\n<p>When a company owns a policy on an employee and collects the benefit, the tax-free amount under <a href=\"https:\/\/www.law.cornell.edu\/uscode\/text\/26\/101\">IRC \u00a7 101(j)<\/a> is generally capped at the premiums and other amounts the company paid for the contract. The cap is lifted only when the written notice and consent requirements are met and one of the statute&#8217;s listed exceptions also applies. Examples include an insured who was a director when the contract was issued, or an amount paid to the insured&#8217;s family member, designated beneficiary, trust or estate. The employee must be notified in writing of the intent to insure and the maximum face amount. The employee must give written consent. The employee must also be told in writing that the company will be a beneficiary.<\/p>\n<p>Premium deductions are a separate question. Federal rules under <a href=\"https:\/\/www.law.cornell.edu\/uscode\/text\/26\/264\">26 U.S.C. \u00a7 264<\/a> limit deductions tied to life insurance and certain borrowing. The answer turns on the policy and the company&#8217;s tax position.<\/p>\n<p>Our accounting team reviews how the premium and benefit are recorded on the company&#8217;s books and returns. That review stays separate from insurance sales.<\/p>\n<h2>What to Expect: Steps for a Coverage Review<\/h2>\n<p>A coverage review starts with the company&#8217;s ownership chart and the reason for the coverage. It then moves to the application and underwriting steps.<\/p>\n<ol>\n<li><strong>Share the ownership chart.<\/strong> Include the key person&#8217;s role and why coverage is being considered, such as a lender or co-owner request.<\/li>\n<li><strong>Review policy options.<\/strong> Nischay Rawal, a licensed insurance agent, reviews whole life, term, key person, and buy-sell options against the company&#8217;s facts.<\/li>\n<li><strong>Gather company documents.<\/strong> Governing documents, resolutions, and identification are typically needed. The insurer sets the final list.<\/li>\n<li><strong>Complete health questions.<\/strong> The key person answers the health questions. The insurer then issues or declines the policy under its underwriting rules.<\/li>\n<\/ol>\n<p>Florida law bars anyone from acting as an insurance agent unless licensed and appointed, per <a href=\"https:\/\/www.leg.state.fl.us\/statutes\/index.cfm?App_mode=Display_Statute&amp;URL=0600-0699\/0626\/Sections\/0626.112.html\">Fla. Stat. \u00a7 626.112<\/a>.<\/p>\n<p>Florida law also requires a CPA firm that accepts a commission to disclose it to the client in writing, per <a href=\"https:\/\/www.leg.state.fl.us\/statutes\/index.cfm?App_mode=Display_Statute&amp;URL=0400-0499\/0473\/Sections\/0473.3205.html\">Fla. Stat. \u00a7 473.3205<\/a>. A CPA firm that accepts a commission for the sale of a product or service to a client must disclose that fact to the client in writing, as Florida law requires.<\/p>\n<p>Timing varies with the insurer and the paperwork.<\/p>\n\n<figure class=\"wp-block-image size-large has-custom-border\"><img decoding=\"async\" src=\"https:\/\/nrcpas.com\/life-insurance-guides\/wp-content\/uploads\/2026\/10\/two-colleagues-sit-at-a-desk-in-an-office-reviewing-document-photo.jpg\" alt=\"Two colleagues sit at a desk in an office, reviewing documents and working on laptops together.\" style=\"border-radius:8px;width:100%;aspect-ratio:16\/9;object-fit:cover\"\/><\/figure>\n<h2>Frequently Asked Questions<\/h2><details class=\"wp-block-details chg-faq is-layout-flow wp-block-details-is-layout-flow\"><summary>Can a U.S. company buy key person insurance on a foreign-national owner?<\/summary><p class=\"wp-block-paragraph\">Yes, if the company has an insurable interest and the owner consents in writing before the policy is bought. The insurer makes the final decision on issue and terms.<\/p><\/details><details class=\"wp-block-details chg-faq is-layout-flow wp-block-details-is-layout-flow\"><summary>Who must sign the application?<\/summary><p class=\"wp-block-paragraph\">The company signs as applicant and owner through an authorized officer. The insured key person signs consent and health answers.<\/p><\/details><details class=\"wp-block-details chg-faq is-layout-flow wp-block-details-is-layout-flow\"><summary>Are key person premiums tax deductible?<\/summary><p class=\"wp-block-paragraph\">Not always. Federal tax rules limit some life insurance deductions, so the company&#8217;s tax position matters.<\/p><\/details><details class=\"wp-block-details chg-faq is-layout-flow wp-block-details-is-layout-flow\"><summary>Is the death benefit taxable?<\/summary><p class=\"wp-block-paragraph\">Generally no, under <a href=\"https:\/\/www.law.cornell.edu\/uscode\/text\/26\/101\">26 U.S.C. \u00a7 101<\/a>. Exceptions exist, and interest on proceeds held by the insurer can be taxable.<\/p><\/details><details class=\"wp-block-details chg-faq is-layout-flow wp-block-details-is-layout-flow\"><summary>Does foreign residence or citizenship affect approval?<\/summary><p class=\"wp-block-paragraph\">It can change the questions, the paperwork, and the insurers available. The insurer decides issue and terms.<\/p><\/details><details class=\"wp-block-details chg-faq is-layout-flow wp-block-details-is-layout-flow\"><summary>Is this the same as a personal life policy?<\/summary><p class=\"wp-block-paragraph\">No. The company is usually the owner and beneficiary, and it needs an insurable interest and the insured&#8217;s written consent.<\/p><p>If a lender or co-owner has raised key person coverage and ownership is still unclear, call us today to request a coverage review. You can also send your ownership chart through our <a href=\"https:\/\/nrcpas.com\/contact\">contact page<\/a>.<\/p><\/details><\/article>\n<footer class=\"disclaimer\"><em>NR CPAs &amp; Business Advisors, LLC, 782 NW 42nd Avenue, Suite 534, Miami, FL 33126. Life insurance is offered by Nischay Rawal, a Florida-licensed life and health insurance agent (license G066337). This page is general information about life insurance, not tax, legal or investment advice, and not an offer of any specific policy. Coverage, premiums and benefits depend on the issuing insurer&#x27;s underwriting and the policy&#x27;s terms. Policy loans and withdrawals reduce cash value and the death benefit and may have tax consequences.<\/em><\/footer>\n\n\n<div class=\"wp-block-group alignwide has-global-padding is-layout-constrained wp-container-core-group-is-layout-583d630a wp-block-group-is-layout-constrained\" style=\"padding-top:3rem;padding-bottom:3rem;padding-left:1.5rem;padding-right:1.5rem\">\n\n<div class=\"cta-dose-mid wp-block-group has-base-color has-accent-background-color has-text-color has-background has-global-padding is-layout-constrained wp-container-core-group-is-layout-32197852 wp-block-group-is-layout-constrained\" style=\"background-color:var(--wp--preset--color--accent,#20242e);color:var(--wp--preset--color--base,#ffffff);border-radius:8px;padding-top:1.5rem;padding-bottom:1.5rem;padding-left:1.5rem;padding-right:1.5rem;border-left:6px solid var(--wp--preset--color--cta,currentColor);box-shadow:0 2px 10px rgba(0,0,0,0.18)\">\n<h3 class=\"wp-block-heading has-base-color has-text-color\">Want to know where you stand?<\/h3><p class=\"wp-block-paragraph\">Tell us about your situation and our team will walk you through the options available to you.<\/p><div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\"><div class=\"wp-block-button chg-cta-call\"><a class=\"wp-block-button__link wp-element-button\" href=\"tel:+13058723096\">Request a coverage review<\/a><\/div><div class=\"wp-block-button chg-cta-form\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/nrcpas.com\/contact\">Request a coverage review<\/a><\/div><\/div>\n<\/div>\n<h2 class=\"wp-block-heading has-text-align-center\">How we approach key person coverage<\/h2>\n<div class=\"wp-block-columns alignwide is-layout-flex wp-container-core-columns-is-layout-f56f613f wp-block-columns-is-layout-flex\"><div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\"><p class=\"wp-block-paragraph\"><span class=\"chg-icon chg-icon--users\"><\/span><\/p><h3 class=\"wp-block-heading\">Built around your ownership<\/h3><p class=\"wp-block-paragraph\">We look at who owns the company, who runs it, and which people the business depends on most.<\/p><\/div><div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\"><p class=\"wp-block-paragraph\"><span class=\"chg-icon chg-icon--document\"><\/span><\/p><h3 class=\"wp-block-heading\">Clear paperwork<\/h3><p class=\"wp-block-paragraph\">We walk through the application, the company&#x27;s role as applicant and owner, and the written consent the insured person provides before a policy is bought.<\/p><\/div><div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\"><p class=\"wp-block-paragraph\"><span class=\"chg-icon chg-icon--lightbulb\"><\/span><\/p><h3 class=\"wp-block-heading\">A CPA&#x27;s view of tax and cash flow<\/h3><p class=\"wp-block-paragraph\">We consider how premiums and proceeds may affect the company&#x27;s books, cash flow and planning, and we bring those points into the discussion.<\/p><\/div><div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\"><p class=\"wp-block-paragraph\"><span class=\"chg-icon chg-icon--chat\"><\/span><\/p><h3 class=\"wp-block-heading\">Plain-language explanations<\/h3><p class=\"wp-block-paragraph\">We explain how whole life and term coverage differ, what the insurer decides on issue and terms, and what each option costs to carry over time.<\/p><\/div><\/div>\n\n<\/div>\n\n\n\n<div class=\"wp-block-group has-base-color has-accent-background-color has-text-color has-background has-global-padding is-layout-constrained wp-container-core-group-is-layout-32197852 wp-block-group-is-layout-constrained\" style=\"background-color:var(--wp--preset--color--accent,#20242e);color:var(--wp--preset--color--base,#ffffff);border-radius:8px;padding-top:1.5rem;padding-bottom:1.5rem;padding-left:1.5rem;padding-right:1.5rem;border-left:6px solid var(--wp--preset--color--cta,currentColor);box-shadow:0 2px 10px rgba(0,0,0,0.18)\">\n<h3 class=\"wp-block-heading has-base-color has-text-color\">Important: health questions apply<\/h3><p class=\"wp-block-paragraph\">Key person insurance is fully underwritten. Applicants answer health questions, and issue and terms depend on insurability as decided by the insurer. Insurance is offered by our licensed agent, separately from the firm&#x27;s accounting practice.<\/p><div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\"><div class=\"wp-block-button chg-cta-call\"><a class=\"wp-block-button__link wp-element-button\" href=\"tel:+19542316613\">Call us today to discuss your situation<\/a><\/div><div class=\"wp-block-button chg-cta-form\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/nrcpas.com\/contact\">Call us today to discuss your situation<\/a><\/div><\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-group alignfull has-surface-background-color has-background has-global-padding is-layout-constrained wp-container-core-group-is-layout-583d630a wp-block-group-is-layout-constrained\" style=\"padding-top:3rem;padding-bottom:3rem;padding-left:1.5rem;padding-right:1.5rem\">\n<h2 class=\"wp-block-heading has-text-align-center\">Common situations we review<\/h2>\n<div class=\"wp-block-columns alignwide is-layout-flex wp-container-core-columns-is-layout-f56f613f wp-block-columns-is-layout-flex\"><div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\"><div class=\"wp-block-group has-base-background-color has-background is-layout-flow wp-block-group-is-layout-flow\" style=\"border-radius:8px;box-shadow:0 4px 14px rgba(0,0,0,0.08);padding-top:1.5rem;padding-bottom:1.5rem;padding-left:1.5rem;padding-right:1.5rem\"><h3 class=\"wp-block-heading\">Foreign-national owner<\/h3><p class=\"wp-block-paragraph\">A U.S. company may buy coverage on the life of a foreign-national owner when it has an insurable interest and the owner consents in writing before the policy is bought.<\/p><\/div><\/div><div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\"><div class=\"wp-block-group has-base-background-color has-background is-layout-flow wp-block-group-is-layout-flow\" style=\"border-radius:8px;box-shadow:0 4px 14px rgba(0,0,0,0.08);padding-top:1.5rem;padding-bottom:1.5rem;padding-left:1.5rem;padding-right:1.5rem\"><h3 class=\"wp-block-heading\">Key executives and employees<\/h3><p class=\"wp-block-paragraph\">Companies that rely on a few people for sales, operations or technical knowledge can review coverage that supports the business if one of them is lost.<\/p><\/div><\/div><div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\"><div class=\"wp-block-group has-base-background-color has-background is-layout-flow wp-block-group-is-layout-flow\" style=\"border-radius:8px;box-shadow:0 4px 14px rgba(0,0,0,0.08);padding-top:1.5rem;padding-bottom:1.5rem;padding-left:1.5rem;padding-right:1.5rem\"><h3 class=\"wp-block-heading\">Buy-sell planning<\/h3><p class=\"wp-block-paragraph\">Owners who want to plan for a partner&#x27;s death or departure can review how key person and buy-sell coverage may fit together.<\/p><\/div><\/div><div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\"><div class=\"wp-block-group has-base-background-color has-background is-layout-flow wp-block-group-is-layout-flow\" style=\"border-radius:8px;box-shadow:0 4px 14px rgba(0,0,0,0.08);padding-top:1.5rem;padding-bottom:1.5rem;padding-left:1.5rem;padding-right:1.5rem\"><h3 class=\"wp-block-heading\">Cross-border families<\/h3><p class=\"wp-block-paragraph\">NRI clients with U.S. businesses and family abroad can review how whole life or term coverage fits their goals and tax picture.<\/p><\/div><\/div><\/div>\n\n<\/div>\n\n\n\n<div class=\"wp-block-group alignfull has-base-color has-primary-background-color has-text-color has-background has-global-padding is-layout-constrained wp-container-core-group-is-layout-4d466591 wp-block-group-is-layout-constrained\" style=\"background-color:var(--wp--preset--color--primary,#20242e);color:var(--wp--preset--color--base,#ffffff);padding-top:3rem;padding-bottom:3rem;padding-left:1.5rem;padding-right:1.5rem\">\n<h2 class=\"wp-block-heading has-text-align-center has-base-color has-text-color\">Protect your loved ones and the business they depend on<\/h2>\n<div class=\"wp-block-buttons is-content-justification-center is-layout-flex wp-container-core-buttons-is-layout-0aa01211 wp-block-buttons-is-layout-flex\"><div class=\"wp-block-button chg-cta chg-cta-call\"><a class=\"wp-block-button__link wp-element-button\" href=\"tel:+19542316613\">Call us today<\/a><\/div><div class=\"wp-block-button chg-cta chg-cta-form\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/nrcpas.com\/contact\">Call us today<\/a><\/div><\/div>\n<\/div>\n\n<h2 class=\"wp-block-heading\">Related practice areas<\/h2><ul class=\"wp-block-list\"><li><a href=\"\/life-insurance-guides\/key-person-insurance\/key-person-insurance-lender-requirement\/\">Key Person Insurance for Lender Requirements: How Banks Use Key Person Life Insurance as Loan Collateral<\/a><\/li><li><a href=\"\/life-insurance-guides\/key-person-insurance\/transfer-key-person-policy-ownership\/\">Transferring Ownership of a Key Person Policy to an Employee or Partner: Tax and Policy Steps Before You Sign<\/a><\/li><li>Key Person Insurance When an Owner Moves to India<\/li><\/ul>\n<!-- chg:section-siblings -->\n<nav aria-label=\"More in this section\">\n<h2>More in this section<\/h2>\n<ul><li><a href=\"\/life-insurance-guides\/key-person-insurance\/key-person-insurance-founder-shareholders-abroad\/\">Key Person Insurance for Founder-Led Companies With Shareholders Abroad<\/a><\/li><li><a href=\"\/life-insurance-guides\/key-person-insurance\/key-person-insurance-franchise-business\/\">Key Person Insurance for a Franchise Business in Florida<\/a><\/li><li><a href=\"\/life-insurance-guides\/key-person-insurance\/key-person-insurance-green-card-sponsor-employer\/\">Key Person Insurance for Companies That Sponsor an Employee&#x27;s Green Card<\/a><\/li><li><a href=\"\/life-insurance-guides\/key-person-insurance\/key-person-insurance-h1b-l1-business-owner\/\">Key Person Insurance for an H-1B or L-1 Business Owner: Coverage, Ownership and Visa Questions<\/a><\/li><li><a href=\"\/life-insurance-guides\/key-person-insurance\/key-person-insurance-h1b-l1-employee\/\">Key Person Insurance on an H-1B or L-1 Employee: Insurable Interest, Visa Status and Who Owns the Policy<\/a><\/li><\/ul>\n<\/nav>\n<!-- \/chg:section-siblings -->","protected":false},"excerpt":{"rendered":"<p>Key person insurance for a foreign-owned US company: insurable interest, who owns, pays and signs, and tax basics. Offered by a licensed agent.<\/p>\n","protected":false},"author":2,"featured_media":0,"parent":16,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"chg_review":"","chg_sendback":"","chg_canonical":"","chg_lang":"","chg_hreflang":"[{\"hreflang\": \"en\", \"href\": \"https:\/\/nrcpas.com\/life-insurance-guides\/key-person-insurance\/key-person-insurance-foreign-owned-us-company\/\"}, {\"hreflang\": \"es\", \"href\": \"https:\/\/nrcpas.com\/life-insurance-guides\/es\/seguro-persona-clave\/seguro-persona-clave-empresa-eeuu-capital-extranjero\/\"}, {\"hreflang\": \"x-default\", \"href\": \"https:\/\/nrcpas.com\/life-insurance-guides\/key-person-insurance\/key-person-insurance-foreign-owned-us-company\/\"}]","chg_jsonld":"[{\"@context\": \"https:\/\/schema.org\", \"speakable\": {\"@type\": \"SpeakableSpecification\", \"cssSelector\": [\"article > p:first-of-type\", \".wp-block-details p\", \"article > h1\"]}, \"author\": {\"@type\": \"Person\", \"name\": \"Nischay Rawal\", \"url\": \"https:\/\/nrcpas.com\/author\", \"jobTitle\": \"Managing Partner, CPA, EA and Licensed Life Insurance Agent\", \"sameAs\": [\"https:\/\/licenseesearch.fldfs.com\/Licensee\/2306161\", \"https:\/\/www.myfloridalicense.com\/portalsearches\/VerifyLicensee\/LicenseDetail?ID=D6E76E58125054CFA98C8D92AF9DBC44\", \"https:\/\/www.taxbuzz.com\/florida\/miami\/nr-cpas-and-business-advisors-llc\", \"https:\/\/x.com\/nrawal786\", \"https:\/\/www.linkedin.com\/in\/nischay-rawal-cpa-ea-22741924a\/?isSelfProfile=false\"]}, \"publisher\": {\"@type\": \"Organization\", \"@id\": \"https:\/\/nrcpas.com\/life-insurance-guides\/#organization\", \"name\": \"NR CPAs & Business Advisors\", \"url\": \"https:\/\/nrcpas.com\/\"}, \"reviewedBy\": {\"@type\": \"Person\", \"name\": \"Erika Trinidad\", \"jobTitle\": \"Accountant\"}, \"inLanguage\": \"en\", \"mainEntity\": [{\"@type\": \"Question\", \"name\": \"Can a U.S. company buy key person insurance on a foreign-national owner?\", \"acceptedAnswer\": {\"@type\": \"Answer\", \"text\": \"Yes, if the company has an insurable interest and the owner consents in writing before the policy is bought. The insurer makes the final decision on issue and terms.\"}}, {\"@type\": \"Question\", \"name\": \"Who must sign the application?\", \"acceptedAnswer\": {\"@type\": \"Answer\", \"text\": \"The company signs as applicant and owner through an authorized officer. The insured key person signs consent and health answers.\"}}, {\"@type\": \"Question\", \"name\": \"Are key person premiums tax deductible?\", \"acceptedAnswer\": {\"@type\": \"Answer\", \"text\": \"Not always. Federal tax rules limit some life insurance deductions, so the company's tax position matters.\"}}, {\"@type\": \"Question\", \"name\": \"Is the death benefit taxable?\", \"acceptedAnswer\": {\"@type\": \"Answer\", \"text\": \"Generally no, under 26 U.S.C. \u00a7 101. Exceptions exist, and interest on proceeds held by the insurer can be taxable.\"}}, {\"@type\": \"Question\", \"name\": \"Does foreign residence or citizenship affect approval?\", \"acceptedAnswer\": {\"@type\": \"Answer\", \"text\": \"It can change the questions, the paperwork, and the insurers available. The insurer decides issue and terms.\"}}, {\"@type\": \"Question\", \"name\": \"Is this the same as a personal life policy?\", \"acceptedAnswer\": {\"@type\": \"Answer\", \"text\": \"No. The company is usually the owner and beneficiary, and it needs an insurable interest and the insured's written consent.If a lender or co-owner has raised key person coverage and ownership is still unclear, call us today to request a coverage review. You can also send your ownership chart through our contact page.\"}}], \"@type\": [\"Article\", \"FAQPage\"], \"image\": \"https:\/\/nrcpas.com\/life-insurance-guides\/wp-content\/uploads\/2026\/10\/a-senior-operations-manager-reviews-production-schedules-at-photo-28.jpg\"}, {\"@id\": \"https:\/\/nrcpas.com\/life-insurance-guides\/key-person-insurance-foreign-owned-company\/#webpage\", \"url\": \"https:\/\/nrcpas.com\/life-insurance-guides\/key-person-insurance-foreign-owned-company\/\", \"name\": \"Key Person Insurance for Foreign-Owned US Companies\", \"@type\": \"WebPage\", \"about\": {\"name\": \"Key person life insurance\", \"@type\": \"Thing\"}, \"audience\": {\"@type\": \"BusinessAudience\", \"audienceType\": \"Owners, shareholders and finance leads of US companies with foreign owners or foreign-national key people\"}, \"isPartOf\": {\"@id\": \"https:\/\/nrcpas.com\/life-insurance-guides\/#organization\"}, \"publisher\": {\"@type\": \"Organization\", \"@id\": \"https:\/\/nrcpas.com\/life-insurance-guides\/#organization\", \"name\": \"NR CPAs & Business Advisors\", \"url\": \"https:\/\/nrcpas.com\/\"}, \"inLanguage\": \"en-US\", \"mainEntity\": {\"@type\": \"FAQPage\", \"mainEntity\": [{\"name\": \"Can a US company buy key person insurance on a foreign-national owner?\", \"@type\": \"Question\", \"acceptedAnswer\": {\"text\": \"It depends on the company's insurable interest in the person, the insurer's rules, and the insured's written consent. A company with a documented financial reliance on the person is generally in a stronger position than one without.\", \"@type\": \"Answer\"}}, {\"name\": \"Who must sign the application?\", \"@type\": \"Question\", \"acceptedAnswer\": {\"text\": \"The applicant or policy owner, usually the company acting through an authorized officer, signs for the company. The insured person gives consent and completes the health questions personally. The beneficiary is named on the application. The exact signing roles and required documents depend on the company's structure and the insurer's requirements.\", \"@type\": \"Answer\"}}, {\"name\": \"Are key person premiums tax deductible?\", \"@type\": \"Question\", \"acceptedAnswer\": {\"text\": \"Under the general rule, premiums for key person life insurance are not deductible as a business expense when the company is the beneficiary. The company's CPA reviews its own tax position, and tax treatment depends on the facts of the company, the policy and the owner.\", \"@type\": \"Answer\"}}, {\"name\": \"Is the death benefit taxable?\", \"@type\": \"Question\", \"acceptedAnswer\": {\"text\": \"Under the general federal rule, life insurance death benefits are not subject to federal income tax. That statement has limits, including rules that depend on how the policy is owned and transferred, so a CPA should review the specific facts.\", \"@type\": \"Answer\"}}, {\"name\": \"Does a foreign residence or citizenship affect approval?\", \"@type\": \"Question\", \"acceptedAnswer\": {\"text\": \"It can. Citizenship, country of residence and travel or residence history can change the questions asked, the paperwork requested and the insurers available. Underwriting can differ, and the insurer makes the final decision on issue and terms.\", \"@type\": \"Answer\"}}, {\"name\": \"Is this the same as a personal life policy?\", \"@type\": \"Question\", \"acceptedAnswer\": {\"text\": \"No. A key person policy is owned and paid for by the business and is based on the company's insurable interest in the insured. 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