Are there income tax deductions for the premiums?
It depends. Most policies sold today are “tax-qualifed.” Premiums may be deductible; benefits are not normally taxable Businesses: Premiums paid by a C Corporation for employees – and often for spouses – are fully deductible by the corporation, so this is a great way to save on taxes now and protect assets now and later. For other businesses, deductibility depends on your business structure, and possibly on your age. Individuals: Premiums are considered a medical expense and may be deductible if your total medical expenses exceed 7.5% of your adjusted gross income. The deductible premium amounts are limited according to your age. These are the figures for 2008.
