Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
Generally speaking, the answer is no. The good news is that the proceeds (death benefit) are not includable in gross income for income tax purposes. You are trading a small amount of deduction for a potentially huge tax free benefit. For this reason alone there hasn’t been much demand for deductible life insurance.
Retirement Income Strategist, KJ Financial, Liberty, Missouri
Excellent question. Before I try to tackle this, please realize I am not a tax advisor so this response should not be used as tax advice, always consult your tax professional.
Typically, since the death benefits of life insurance are tax-free (although the amount of the death benefit could push one over the exclusion amount for estate taxes) the premiums paid for life insurance would not be tax-deductible.
Typically, the IRS doesn't like for us to be able to use tax-deductible dollars to fund something that is tax-free. Although, I'm always on the lookout for a loop-hole that allows it! :)
I hope that helps, if you have something more specific please let me know.
President / CEO, Financial Partners, Inc., Yelm, WA
Wouldn't that be nice if it were... Unfortunately, it is not unless you have named a Qualified Charity as the Irrevocable Beneficiary. So, unless you have a special charity you are looking to donate to, Life Insurance is Not Tax Deductible. But the good news is, the Death Proceeds are in most cases, Tax Free...
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Typically, since the death benefits of life insurance are tax-free (although the amount of the death benefit could push one over the exclusion amount for estate taxes) the premiums paid for life insurance would not be tax-deductible.
Typically, the IRS doesn't like for us to be able to use tax-deductible dollars to fund something that is tax-free. Although, I'm always on the lookout for a loop-hole that allows it! :)
I hope that helps, if you have something more specific please let me know.