Are life insurance premiums tax deductible?

Question

Bill Sandefur · Accepted Answer

In short the answer is, it depends. If you are a business owner and you are buying a policy on a key person within your business they to ensure in the event of death of that individual then the premiums would be taxed deductible as a business expense. If you are an individual purchasing Insurance on yourself, in general no they're not text deductible

Answered by Bill Sandefur on June 22, 2026

Agent Licensed in GA

Answered by Bill Sandefur Life Insurance Agent

Marc Carr · Answer

No, usually not.  Here is why.  When you pay monthly premiums it is money taken out of your personal checking or savings account.  This money in your checking/savings has already been taxed.  Therefore you can not deduct the monthly payments against your taxes.  

However, if you own a business, and you take out a life insurance policy on a Key Employee, and use your business checking to pay monthly premiums on the life insurance policy, then this would be ok to deduct the monthly premiums as a tax deduction as this would be considered a business expense.

Edward Smith, ChFC, CRPS, AIF · Answer

It can be but it depends on who owns the policy, who is paying for the policy and what is the policy for.

Dina Todd · Answer

There are no tax breaks currently for life insurance premiums.
The death benefit your beneficiaries receive is usually tax-free generally speaking.

Juliette Chihade · Answer

No, not for personal policies. IRS considers them as a personal expense. The upside is that the death benefit is generally income-tax-free.

Exceptions: a business can deduct group term life premiums for employees (first $50K of coverage is tax-free to the employee), but not key person policies where the business is the beneficiary. Donating a policy to charity and continuing to pay premiums can also qualify.

I'm not a tax advisor; I recommend checking with a CPA if a business policy is involved.

Felipe Parker · Answer

Generally, life insurance premiums are not tax deductible. If a premium is deducted (such as when an employer pays it as a business expense) the resulting death benefit typically becomes taxable.

Shahwali Hotaki · Answer

Generally, no. Life insurance premiums paid for a personal policy are not tax deductible for individuals.
There are some exceptions for businesses, such as certain employer-provided group life insurance arrangements or when life insurance is used as part of a qualified employee benefit plan. Tax treatment can vary based on ownership, beneficiaries, and business structure.
If you're a business owner, it's a good idea to consult a tax professional to determine whether any deductions may apply to your specific situation.
This information is for educational purposes only and should not be considered tax advice.

Shahwali Hotaki, Licensed Insurance Professional