Tax Facts

245 / Are premiums paid for group term life insurance deductible business expenses?

Yes.

Premiums paid by an employer for group term insurance on the lives of employees are deductible.1 This is so even if a plan discriminates in favor of key employees ( Q 249).

A corporation may deduct premiums it pays for coverage on the lives of commission salespersons irrespective of whether an employer-employee relationship exists between the salesperson and the corporation.2

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