Can A Corporation Deduct Life Insurance Premiums? 
Life insurance as a standalone product is not deductible . However , life insurance in a qualified plan is deductible . The life insurance portion of the annual contributions can use whole life -LRB- 49.5 % -RRB- or universal life -LRB- 25 % -RRB- . In 419 DBO plans life insurance is strictly a death benefit product and can also be deductible . Executive bonus plans can compensate an employee in a bonus arrangement , but the purchase of the life insurance is outside the corporation , but may as a balance sheet transaction may in end with the same result . 