Tax Treatment of Premiums

Individual life premiums are a personal expense — NOT tax-deductible. Narrow exceptions: premiums paid on a policy owned by and payable to a qualified charity (a charitable gift), and premiums an employer pays on group coverage as a deductible employee-benefit expense (§162) — but never if the employer is directly or indirectly a beneficiary (§264(a)(1)). ⚠️ Premiums on court-ordered coverage for an ex-spouse were deductible only under the pre-2019 alimony rules; the TCJA repealed the alimony deduction for instruments executed after 12/31/2018.