A corporation can be both the owner and the beneficiary of a life insurance policy. In this case, the corporation pays the premium for the policy and since it is the beneficiary, upon death of one of the covered persons (shareholders), the corporation will receive the proceeds based on the insurance contract. Please note that in most case, the premiums paid for the policy is not tax-deductible (cannot be considered as the corporation expense) but those premiums can still be financed by corporate dollars before tax rather than after tax dollars per person. The insurance proceeds, once received, are not taxable to the corporation. It will be first cost-adjusted and then added to the company’s capital dividend account which then can be paid, tax free, as capital dividends to the shareholders.