Cash Surrender Value
Cash Surrender Value
Cash Surrender Value
Background
1. A business insures the life of its officers. 2. The beneficiary is the business.
Reason
1. To compensate the business for the loss of services arising from the untimely death of important members of management.
Special Note
1. If the beneficiary of the life policy is other than the company a. no complicated accounting procedures b. payment of premium is charged to insurance expense.
Cash Cash surrender value Life insurance expense Gain on life insurance settlement
May 2009