Unfortunately, your life insurance premiums are not tax-deductible, because it’s considered a personal expense, just like purchasing clothes or any other products. The Federal government nor any state require someone to purchase a life insurance policy.
On the flip side, your beneficiaries receive the death benefit and is tax-free. They don’t have to pay taxes on the money they receive as long as you paid your premiums. For example, if you receive a $1 million death benefit, you don’t have to pay taxes on that $1 million. A benefit payment is not considered income on your income tax return.
Cosmo Insurance Agency is an independent insurance agency serving surrounding communities in New Jersey. Cosmo keeps its promise to assure an efficient and creative approach to the services we offer. Each of our clients experience a personalized and long-term relationship with us. Our New Jersey based team of health brokers guides our clients in helping them choose the most cost-effective options. By incorporating the latest in technology-based tools and laws on healthcare, employee benefits, life insurance and finance, we keep our clients up-to-date with the plans that encompass all of their needs, whether it is individual or group insurance.
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