Life insurance premiums are usually not deductible for tax purposes. However, some exceptions do exist such as if the beneficiary is a registered charity or if the insured is requested by the bank to buy life insurance as collateral for obtaining a loan. The good news from a tax perspective is that the death benefits are paid out tax-free to the beneficiary.
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.