Is Corporate Owned Life Insurance Ethical? 
A corporation operates as a person and as such can buy life insurance . They can only buy life insurance on someone with whom they have an insurable interest . They can not select someone at random , purchase insurance on them and then hope that they die soon . A corporation would suffer a loss if a key person were to die prematurely . The corporation may have other obligations such as buying back the shares of a deceased shareholder . There are many reasons that a corporation can and should purchase life insurance . 