In Most Situations, Canadian Corporations Pay Life Insurance Premiums Using After-tax Corporate Dollars, Meaning These Payments Cannot Be Deducted From Gross Business Income For Tax Purposes. However, If A Regulated Financial Institution Explicitly Requires A Corporate Life Insurance Policy As Collateral To Secure An Active Commercial Business Loan, A Portion Of The Net Cost Of Pure Insurance (NCPI) May Qualify As A Legitimate Corporate Tax Deduction.
