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Life Insurance Premiums
A life insurance policy Life Insurance Premiums can pay a benefit based on the kind of policy which was purchased and the benefit which is offered. The aim of a life insurance policy is to support the beneficiary of the same. You can pay the benefits of a life insurance policy in various ways. This will result in various tax consequences. Are life insurance premiums tax deductible? In order to know the answers for this question, read this article.
Know About Premium Payments
As opposed to premium which people pay for individual health insurance policies, the premiums that people pay for a life insurance policy are in no way, tax deductible. This is due to the fact that premiums which you pay for a policy are not an expense which you can deduct on a tax return.
All You Need To Know About The Accelerated Death Benefit
Death benefits are usually paid when you file a claim after the person whose name is insured on the policy passes away. An accelerated death benefit can be availed when the benefit of a policy is paid when the person whose name in which it is insured becomes terminally ill. This benefit is free from taxes as it is considered as the same benefit, which would have been paid if the insurer had passed away.
What You Need To Know About Matured Life Contracts
- A life insurance policy like this pays the benefit amount when the policy term expires or reaches maturity. As soon as that happens, proceeds from that policy will not be taken as a benefit for the purpose of paying tax.
Things To Know About Dividends
- Life insurance policies through which dividends are paid are pretty convenient. Only the amount paid as part of the dividend should exceed the cost of the policy. As long as the dividends paid off do not exceed the cost of the policy, taxes are not imposed on them. Owing to this, dividend which you receive from a life insurance policy is said to be a refund or return of premium.
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All About Loans and Cash Surrenders
- Through a life insurance policy, a cash value can be raised. This can be used for a loan. It can be collected if you surrender the policy. The amount of the loan in this case must not exceed the cash value that has been raised on the policy.
I think I have provided answers to the question-are life insurance premiums tax deductible. For more on related posts, check the other articles posted in this website.