Can Life Insurance Be Deducted As A Business Expense? 
Group term life policies can be deducted if the amount of coverage is $ 50,000 or less . If the amount of coverage is greater then $ 50,000 then group term life insurance is subject to social security and medicare taxes but not FUTA taxes or income tax withholding , even when benefits are provided as a qualified benefit in a section 125 cafeteria plan . 