They want the business to pay for the coverage and the spouse to be beneficiary. But that will cause income tax liability on the death benefit. To ensure the spouse receives the death benefit tax efficiently (gift tax, estate tax, income tax), the policy owner should be the insured.

The grandparents want to be sure their grandchildren are taken care of. But again, having three parties to an insurance contract will cause negative tax implications. The grandparents want to control the premiums, but a better scenario would be for them to have their child (also the insured) be the owner. The grandparents can still pay the premiums.

This one is key person, a business insurance solution that reimburses the business for the loss of a valuable employee while funding the employee’s salary continuation plan at retirement.