Can Life Insurance Premiums Be Deducted From Taxes?

by Mark Kennan ; Updated July 27, 2017

In general, the Internal Revenue Service does not allow you to take a tax deduction for life insurance premiums. The medical expenses tax deduction is limited to only insurance that covers qualified medical expenses.

Types

The IRS disallows a tax deduction for life insurance or other policies that pay a benefit for loss of life, disability or lost earnings.

What Can You Deduct?

The IRS allows you to deduct medical insurance premiums that you are not reimbursed for that cover preventative care and treatment for medical, dental and vision care.

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Misconceptions

If you have medical or life insurance as part of your car insurance, the IRS does not allow you to claim a deduction because it is not a separate policy.

Exceptions

According to Investopedia.com, you may be able to claim a small deduction if you purchase your life insurance through a Section 125 cafeteria plan or as part of a group plan.

Considerations

Businesses are allowed to take a deduction for group life insurance plans.

About the Author

Based in the Kansas City area, Mike specializes in personal finance and business topics. He has been writing since 2009 and has been published by "Quicken," "TurboTax," and "The Motley Fool."

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