Are life insurance premiums tax deductible in Canada? | Mike Butean

Updated: May 6

In this article, I will talk about if life insurance policies are tax-deductible in Canada

Are life insurance premiums tax-deductible in Canada?

Generally no. You put in tax-free money and you get out tax-free money.

Same rule applies for living benefits: critical illness, disability, and accident & sickness insurance.

However, you can have the health benefits tax-deductible or you can turn all the health expenses into business expense by using a Health & Welfare trust

What other deductions can you get then?

You can get deductions only if you take a loan against the cash surrender value and then the interest rate is deductible.

This is valid for universal life and whole life policies which have Cash Surrender values.

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