In general, life insurance premiums are not tax deductible for individuals in Canada. If you are paying premiums for a personal life insurance policy, you cannot claim them as a deduction on your personal income tax return. However, there are exceptions when it comes to business-owned policies. If a corporation or business owns the life insurance policy and it is used as collateral for a business loan, a portion of the premiums may be tax deductible under specific conditions. Even then, only a limited portion (related to the loan coverage) can typically be deducted. For most Canadians, personal life insurance is treated purely as a private expense with no direct tax benefits in terms of deductions. Despite this, life insurance remains an important financial planning tool because its proceeds are generally tax-free, helping to preserve wealth and provide financial protection for beneficiaries without creating additional tax burdens.