{"id":7184,"date":"2026-10-29T05:09:59","date_gmt":"2026-10-29T05:09:59","guid":{"rendered":"https:\/\/nrcpas.com\/life-insurance-guides\/key-person-insurance\/key-person-insurance-ownership-transfer\/"},"modified":"2026-10-29T23:35:20","modified_gmt":"2026-10-29T23:35:20","slug":"key-person-insurance-ownership-transfer","status":"publish","type":"page","link":"https:\/\/nrcpas.com\/life-insurance-guides\/key-person-insurance\/key-person-insurance-ownership-transfer\/","title":{"rendered":"Transfer Key Person Life Insurance Policy to Owner"},"content":{"rendered":"\n
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Key Person Insurance | Miami, Florida<\/p>

Moving a Key Person Policy to the Business Owner? Plan the Transfer Carefully<\/h1>

NR CPAs & Business Advisors helps Florida business owners review ownership, cash flow and tax considerations before a key person life insurance policy is transferred. Insurance is offered through our licensed insurance agent, Nischay Rawal, separately from our accounting practice.<\/p>

Call us today to schedule a coverage review<\/a><\/div>
Call us today to schedule a coverage review<\/a><\/div><\/div>\n<\/div><\/div>\n\n\n

By Nischay Rawal \u00b7 Published October 29, 2026<\/p>\n\n

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Owners often ask how to transfer key person life insurance policy to owner without creating tax surprises. The short answer is that the business can assign the policy to the insured or another named owner. The price, the tax rules and the estate effects decide whether the move works as planned. This page explains the steps, the federal rules that apply, and the questions to answer first.<\/p>\n

What a key person policy ownership transfer is and who it is for<\/h2>\n

A key person policy ownership transfer moves a business-owned life insurance policy to a new owner, often the person insured. Key person insurance<\/a> is a life insurance policy a business buys on someone it depends on, such as an owner or key employee. The business pays the premiums, owns the policy and is the beneficiary. The coverage helps the business handle financial losses if that person dies. The Insurance Information Institute<\/a> explains who counts as a key employee.<\/p>\n

When that person leaves, retires or changes role, the business may no longer need the policy. The business can then transfer ownership to the insured or another person. The transfer often includes a price based on the policy’s value at that time.<\/p>\n

Ownership transfers are usually considered by:<\/p>\n