If a corporation purchases insurance on the life of its chief executive officer and the corporation is

Question:

If a purchases insurance on the life of its chief executive officer and the is named the policy beneficiary, the premium payments are nondeductible. If the officer’s spouse and children are named as beneficiaries, the premium payments are deductible. Can you provide a reason for this inconsistent tax treatment?
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...