Is Voluntary Life Insurance A Pretax Deduction?

  1. 63333 POINTS
    Peggy Mace
    Most of the U.S.
    Voluntary life insurance that exceeds the $50,000 provided to you by your employer does not receive any tax deduction. However, the death benefit left to your beneficiary is usually tax free, which can be a consideration when looking at the big picture.
    Answered on May 4, 2013
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  2. 11783 POINTS
    Contact Me
    Larry GilmorePRO
    Agent Owner, Gilmore Insurance Services, Marysville, Washington State
    If you own and pay for the voluntary life plan you do not want it to ba taken pre-tax unless you absolutely hate your beneficiary as by taking a tax deduction for your life insurance, that action makes the benefit a taxable occurance.  Currently employers can deduct the expense of life insurance up to 50,000 face amount as a busines expense and the outcome to the employee is not taxed. The employee never paid the premium, the employer did as a benefit. It is much different if the employee pays. There may be some very rare situations where you can deduct the premium, but that is very rare.
    Answered on May 6, 2013
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