![concept-piece-download-70042-irc-101j](https://cdn.ashbrokerage.com/uploads/_960x600_crop_center-center_none/concept-piece-download-70042-irc-101j.png)
It's possible to avoid the taxation of employer-owned life insurance. The general rule is that death benefits paid from a life insurance policy subject to IRC Sec. 101(j) are taxable when received. In order to avoid taxation, clients must qualify for one of several exceptions.