topic Is Life Insurance premium tax exempt? in Deductions & credits

Is Life Insurance premium tax exempt?

LP1968 — Mon, 18 Oct 2021 23:27:57 GMT

I just resigned from my corporate job, which offered life insurance as part of the HR package. So, now I need to start paying myself for life insurance.

Will (any or part of) my life insurance premium be tax exempt?

Thanks.

Re: Is Life Insurance premium tax exempt?

xmasbaby0 — Tue, 19 Oct 2021 00:02:37 GMT

Life insurance premiums are not deductible. There is nothing to enter on your tax return for that.

Re: Is Life Insurance premium tax exempt?

Carl — Tue, 19 Oct 2021 00:06:22 GMT

Typically, what you pay for life insurance premiums is not deductible on any tax return. But when you die, the payout of that policy is not taxable or reportable on any tax return. Exceptions do apply. For example, in some scenarios if the life insurance premiums are tax deductible, then any payout on the policy after you die is taxable to someone; usually the beneficiary recipient. This type of setup is just not all that common though.