Business owners often wonder whether or not life insurance can be claimed as a business expense on their taxes. And the short answer is no because life insurance already benefits from a tax advantage status. It cannot be claimed as a business expense. However, there are a few instances in which it is possible to write off life insurance premiums as a business expense. If the life insurance policy is taken out on a key person in the business such as an owner or a partner, the premiums can be deducted. This is because the death of a key person in the business would have a negative impact on the company’s finances. Another instance in which life insurance premiums can be written off is if the policy is used as collateral for a business loan. In this case, the interest paid on the loan can be deducted as a business expense. This can be a helpful way to reduce the cost of borrowing money for your business and this can get tricky. So we always recommend consulting your insurance agent before making any final decisions.

We’d be happy to review your insurance coverage options with you! Give us a call at 440-729-4042 or visit https://luczkowskiagency.com.