Corporate owned insurance can have many benefits. A policy owned by your operating company though, can cause quite a few headaches. When it comes time to sell your operating company, you may find it very difficult to transfer the policy out of the company. In fact, this type of transfer can have onerous tax consequences. And since there is no rollover for life insurance to or from a corporation, the corporation will have a disposition of the policy that could result in taxable income rather than a capital gain.