It is not legal for a corporation to hold life insurance policies on its employees.

Name: It is not legal for a corporation to hold life insurance policies on its employees.
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Corporations can legally hold life insurance policies on their employees, especially key personnel, through what is known as "key person insurance" or "corporate-owned life insurance" (COLI), to protect against financial losses that could result from the death of the employee.

It Is Not Legal for a Corporation to Hold Life