Life Insurance Comparisons

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Is Life Insurance Tax Deductible?

 

Generally the only time life insurance premiums can be tax deductible is if the policy is owned under superannuation for a self employed person, or you are setting up Key Person insurance on key directors of a business. The reason it is tax deductible for self employed people is because contributions towards superannuation (even if it is only paying your life insurance) is considered tax deductible by the Tax Office.

 

 

The reason the Key Person insurance could be tax deductible is because the use of the funds upon the person's death would be used as a replacement income to the business while they employ someone else in that role. Always seek tax advice from a qualified tax adviser.