What Is Employer Owned Life Insurance? 
The term came in use since 2006 when new rules were applied to life insurance owned by businesses which subjects the death benefit to income taxation unless the employer takes steps to comply with the special requirements of Section 101 -LRB- j -RRB- to prevent the death from being taxable . There are notice and consent requirements to be given to the insured and an annual IRS filing -LRB- form 8925 -RRB- to meet the special requirements . We find that most employers are unaware , especially of the annual reporting requirement . Tax advisers are often surprised to learn about it as well . Work with an experienced life insurance professional who can help assess the situation for in force policies . For new policies , make sure a professional outlines the special requirements for your situation . 