Many consumers shopping for life insurance want to know if the monthly premium is tax-deductible. However, there is not a straight-forward answer that encompasses all situations. For instance, some people get their life insurance through their employer, whereas some get it individually. The answer varies for both circumstances. Watch the video below to know if you qualify for tax deductions!
Are life insurance premiums tax-deductible?
The short answer to that question is, “It depends.” If you’re a business owner, it’s possible that your life insurance premiums can be tax-deductible. Not only for you – the employer – but also for your own employees. Regardless of your situation as either the employer or the employee, you still need to consult with your tax advisor. Because I.R.S. sets certain limits, it depends how much of the premiums are tax deductible. In most cases, where life insurance policies are owned by a business, the premiums are tax-deductible. However, for individually-owned life insurance policies, the premiums are not tax-deductible.
Since insurance is oftentimes overwhelmingly confusing, we want to shed light on this industry by answering YOUR questions. So if you have any questions or concerns, comment below and your question may be the topic of our next video!
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