KEY PERSON INSURANCE ESSENTIAL IN THE FAMILY BUSINESS, SEGURO DEL HOMBRE CLAVE INDISPENSABLE EN LA EMPRESA FAMILIAR

Rosa Hilda Hernandez Sandoval, Sandra Patricia de la Garza Cienfuegos, Laura Leticia Gaona Tamez, Yolanda Saldana Contreras, Fernando M. Ruiz Diaz and Rosa Margarita Torres Hernandez

Revista Global de Negocios, 2016, vol. 4, issue 3, 73-83

Abstract: This research is fiscal examination. The paper aims to demonstrate with scientific methods the deductibility of the expense for key man insurance. The problem is insecurity in the country, and the need in some family businesses to count and deduct as expenses key man insurance. This figure is considered a key part or main gear for the continuity of the family business. The phenomenon arises when this figure disappears unexpectedly, due to illness, temporary or permanent disability, even death. Of the 42 medium-sized Monclova, Coahuila, Mexico, businesses featuring figures with key man characteristics, we surveyed twenty for the sample. It resulted in lacking an insurance plan to compensate the taxpayer for the decrease in productivity the loss of a key man could cause. In the event that the key man disappears, the family company receives income from the insurance. This income is considered taxable.

Keywords: Insurance; Key Man and Tax Deductibility (search for similar items in EconPapers)
JEL-codes: K20 K23 L51 (search for similar items in EconPapers)
Date: 2016
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Persistent link: https://EconPapers.repec.org/RePEc:ibf:rgnego:v:4:y:2016:i:3:p:73-83

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