What is the general tax treatment of premiums paid for personal life insurance in Canada?

Question: What is the general tax treatment of premiums paid for personal life insurance in Canada?

Answer options:

• They are fully deductible from gross income.
• They are deductible only if the beneficiary is a registered charity.
• They are deductible up to a maximum of $2,000 per year. ✅ They are generally not tax-deductible.

Correct answer: They are generally not tax-deductible.

Explanation: Generally, life insurance premiums paid for personal policies are considered a personal expense and are not tax-deductible for the individual. There are rare exceptions for collaterally assigned policies for business loans, but as a rule, they are not deductible.