Are life insurance premiums tax deductible?
The tax treatment of life insurance premiums in Australia depends on the type of cover and how the policy is structured. Here is an overview:
- Income Protection Insurance: Premiums for income protection insurance are generally tax deductible when the policy is personally held; however, any benefits you receive are treated as assessable income. If your policy is held within a super fund, the premiums are deductible to your super fund.
- Life Insurance, TPD, and Trauma Insurance: Premiums for life insurance, total and permanent disability (TPD) insurance, and trauma insurance are typically not tax-deductible when personally held outside of superannuation. If held through a super fund (excluding Trauma Insurance)the premiums are generally deductible to the fund.
