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Key Person Insurance Essential In The Family Business, Seguro Del Hombre Clave Indispensable En La Empresa Familiar

Author

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

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.

Suggested Citation

  • Rosa Hilda Hernandez Sandoval & Sandra Patricia de la Garza Cienfuegos & Laura Leticia Gaona Tamez & Yolanda Saldana Contreras & Fernando M. Ruiz Diaz & Rosa Margarita Torres Hernandez, 2016. "Key Person Insurance Essential In The Family Business, Seguro Del Hombre Clave Indispensable En La Empresa Familiar," Revista Global de Negocios, The Institute for Business and Finance Research, vol. 4(3), pages 73-83.
    • Handle: RePEc:ibf:rgnego:v:4:y:2016:i:3:p:73-83
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    More about this item

    Keywords

    Insurance; Key Man and Tax Deductibility;

    JEL classification:

    • K20 - Law and Economics - - Regulation and Business Law - - - General
    • K23 - Law and Economics - - Regulation and Business Law - - - Regulated Industries and Administrative Law
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation

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