Does purchasing life insurance affect my income tax bracket?
No, purchasing life insurance will not effect your income tax bracket. However, in some instances, you may be able to get a tax deduction for purchasing life insurance or long term care. You will be able to receive a federal tax deduction (and some states also offer a tax deduction) for purchasing a stand-alone long term care policy up to certain limits that vary by age (read more here). In addition, if you own a corporation, you may be able to purchase life insurance contracts on any employee that you wish, which will be tax deductible to your corporation. These plans are known as Executive Bonus Plans. If either of these apply to you or interest you, please speak with your Amplify licensed expert to help you structure the right plan for your situation.
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