In Canada, life insurance premiums can be partially deductible by a corporation if a lender requires life insurance on a loan. The potion that is deductible is the "Net Cost of Pure Insurance" which is calculated based on a table provided by the government.
Theoretically , cash value life insurance can be registered as RRSP's with the savings portion being deductible In practice companies do not permit the registration.
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.
Co-Founder, TermInsuranceBrokers.com, Goldenzweig Financial Group, Las Vegas, Nevada
No. The premiums cannot be taken as a deduction on your tax return.
Life insurance proceeds are not subject to income taxes however (and can be structured to not be included in the calculation of the size of the estate for estate tax purposes).
There are situations where a portion of the premiums may have a taxable benefit for an employer (for group life insurance/business purposes) for the premiums above the amount required for $50,000 of coverage.
Yes, life insurance premiums can be deducted by businesses, in some situations. For individuals, the only way that a portion of life insurance premiums may be deducted is if they are being paid for a policy within a qualified plan. This is the best article I found to explain the complexities of this option: https://www2.ing-usa.com/stellent/public/155969.pdf
Generally no life insurance cannot be tax deductible for an individual. mainly because life insurance proceeds are distributed tax free. However, the exception would be if the life policy were in a qualified retirement plan. For business owners and companies life insurance can be tax deductible up to a $50,000 face amount on employees if the employer is paying the premiums.
Life insurance in general is not tax deductible. However, in several instances it can be. The two most important taxes to considering a deduction is income tax & estate tax. Under income tax, life insurance is deductible inside a qualified retirement plan, like a pension or profit sharing. There are some other instances that it may be deductible for a company. In regards, to the estate tax, life insurance is not really deductible, but it can be taxed heavily if not set up correctly. The ownership of the life insurance policy determines if it is included in the estate & taxed or excluded from the estate and not taxed! In all cases, base to seek competent advisors.
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Theoretically , cash value life insurance can be registered as RRSP's with the savings portion being deductible In practice companies do not permit the registration.
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.
Life insurance proceeds are not subject to income taxes however (and can be structured to not be included in the calculation of the size of the estate for estate tax purposes).
There are situations where a portion of the premiums may have a taxable benefit for an employer (for group life insurance/business purposes) for the premiums above the amount required for $50,000 of coverage.