Yes, in limited situations.
What is Keyman Insurance? It is an insurance policy taken out by a business to cover any loss of revenue arising from the death or disability of a key member (eg. Partner, employee, etc).
Keyman insurance premiums are tax deductible for a business only if one of the following criteria are met:
- The insurance policy is required as a collateral by a lender (eg. Bank) and the proceeds will benefit the business; or
- The insurance premium is part of the employee’s compensation and is a taxable benefit to the employee.
The information provided on this page is intended to provide general information. The information does not take into account your personal situation and is not intended to be used without consultation from accounting and financial professionals. Allan Madan and Madan Chartered Accountant will not be held liable for any problems that arise from the usage of the information provided on this page.