Life insurance death-benefits are tax-free. the premiums on life insurance policies are generally paid with after-tax dollars, rather than pre-tax dollars. However, with Permanent Life insurance policies, there is cash value that grows (within the tax exempt limits of Canada) on a tax-sheltered basis. This money can then be used to offset future premiums. The net-effect premiums are then once again being paid with pre-tax dollars, rather than after tax dollars.
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Thread: Is Life insurance tax-free?
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12-05-2012, 06:51 AM #1
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Is Life insurance tax-free?
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23-02-2013, 03:31 PM #2
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