| Yes, a C-Corporation can pay for the life insurance premiums for its officers/employee, however, the premiums paid are not deductible when computing the C Corporations taxable income. As such, they are considered what is known as a M-1 item and are added back to Book income to arrive at taxable income.
As far as the Officers are concerned if the beneficary is the Officer, than the Officer should really be receiving a 1099-Misc to the extent of the Life Insurance premiums paid on behalf of the Corporations. | 
