IDEAS home Printed from https://ideas.repec.org/a/ibf/rgnego/v4y2016i3p73-83.html
   My bibliography  Save this article

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
    as

    Download full text from publisher

    File URL: http://www.theibfr2.com/RePEc/ibf/rgnego/rgn-v4n3-2016/RGN-V4N3-2016-6.pdf
    Download Restriction: no
    ---><---

    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

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ibf:rgnego:v:4:y:2016:i:3:p:73-83. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Mercedes Jalbert (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.