Are life insurance premiums tax deductible?
Income Protection premiums are tax deductible in Australia, as they are treated as assessable income when the benefits are claimed. However, this can vary depending on the structure of your policy and your personal circumstances, for example if your policy is held within your superannuation fund.
If your Income Protection is held through a superannuation fund, it is likely that the fund will claim the tax deduction on your behalf and you will see the benefit in your fund, rather than your tax return.
Life insurance can have many different tax treatments depending on the policy, whether it is held through a superannuation fund and your personal circumstances. It is always best to carefully read the Product Disclosure Statement to understand how your policy works.
The same applies to Total & Permanent Disability (TPD) and Trauma Insurance, the tax treatment of these types of cover can also vary greatly.
How do I find out more?
A Lifebroker Insurance Consultant can provide you with the facts around tax and your life insurance premiums, but for general and personal tax advice, it is always best to speak with a tax specialist or visit the Australian Tax Office website for further information.