Readers Question:

Quick question. When purchasing life insurance, are the premiums tax deductible? This would help me with the decision between life insurance and market investments. Thank you,

Henry

Houston, TX

Hello Henry,

Under certain circumstances life insurance premiums can be tax deductible in Houston Texas. Every situation would need to be reviewed with a life insurance agent and a tax consultant in Texas. If you own a business, or in other employment situations premiums can be deducted from your tax liability. This only applies to specific types of insurances and your life insurance agent is best suited to develop the most appropriate plan.

You should also keep in mind that for most individuals, life insurance offers other tax based benefits. Whole life insurance offers a unique means to accrue cash and equity on a tax deferred basis. Of course the primary purpose of life insurance is to provide a guaranteed death benefit to your loved ones, but we believe you will find whole life insurance to have many tax advantages.

Of course, every situation is different, like yours. When preparing your estate and planning for your future, you should always consult both your life insurance agent and your tax helper. Your personal portfolio and employment circumstances will determine the tax advantages of your life insurance coverage in Houston.

 

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