Agent Owner, Gilmore Insurance Services, Marysville, Washington State
Can you deduct life insurance premiums? It's going to depend on what type of life insurance you are talking about. If you are referring to group life the cost of premiums up to 50,000 in face amount can be deducted. Above that for group, no. For that type of plan the benefit is not taxed.
The big issue for other coverage is if you take the tax deduction on the premium, you pay taxes on the benefit, which would be a much greater tax hit than the taxes on the premium.
In Canada, the regulations around deducting life insurance premiums are very restrictive. If insurance is required by a lending institution to secure the loan then a portion of the premium may be deducted as a business expense. The amount that can be deducted is the net cost of pure insurance (NCPI), This amount comes from a table provided by the government.
If you have further questions, or feel that I could be of assistance, please do not hesitate to contact me.
If you would like to work with a local life insurance broker, you could start with a Google search. For example, if you search for: life insurance broker Halifax or life insurance agent Halifax, my name, along with several others, will come up. You can use the same method to find a life insurance broker in your community.
Insurance Adviser - Broker, SC Insurance Services, Oahu, Hawaii
That's a good question! Generally the answer is no - if you are referring to premiums on life insurance for yourself. However there can be exceptions such as in Buy-Sell agreements. But in that case you're buying insurance on someone else. There is a way to deduct for life insurance premiums however, but it's not direct. If you pay bonuses to yourself or an employee equal to the amount of premiums you can deduct the bonus as a business expense, but of course you or the employee would need to pay income tax on the bonus.
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The big issue for other coverage is if you take the tax deduction on the premium, you pay taxes on the benefit, which would be a much greater tax hit than the taxes on the premium.
If you have further questions, or feel that I could be of assistance, please do not hesitate to contact me.
If you would like to work with a local life insurance broker, you could start with a Google search. For example, if you search for: life insurance broker Halifax or life insurance agent Halifax, my name, along with several others, will come up. You can use the same method to find a life insurance broker in your community.