Richard CanfieldPodcast Host and IBC Advisor, Ascendant Financial · Authorized Infinite Banking Practitioner | Author of 4 Books

Life Insurance: Asset or Expense?

11 Mar 2025 · 1 min

Watch on YouTube

0:36

A short YouTube discussion (speaker) arguing that permanent life insurance premiums are not deductible under the Income Tax Act and warning that reporting those premiums as an expense on tax filings will prompt CRA scrutiny. The speaker contrasts a common social-media-driven misconception that treats insurance premiums as deductible expenses rather than recognizing permanent life insurance as an asset.

Chapters

This specialized asset, which is a permanent life insurance policy, and you're treating the premiums as an expense, and it's shown as an expense as you're filing your taxes. You can expect a nice phone call from CRA and a letter in the mail to justify this expense. Because specifically, it's not a deductible expense. It's very specifically stated in the Income Tax Act. It's a non deductible expense. The unfortunate misinformation that gets shared from social media and the misunderstanding that thinking that insurance is an expense versus an asset, the cash undervalues an asset. Now you think that, oh, it's an expense, that means I can deduct it, and then you take that deduction.