Is it possible to receive a tax break for disability, health or life insurance? Occasionally. Here are some questions to ask a tax expert to help you find the answers.

“Is there a simple yes or no answer to whether insurance premiums are tax deductible?” is a question you might have when preparing your taxes.

I apologize, but there isn’t a one-word response. “Probably not” is the best two-word response.

When can you deduct insurance premiums from your taxes?

Depending on your personal or business’s unique tax circumstances, your insurance premiums may or may not be tax deductible.

(*Premiums are the monthly or yearly costs associated with insurance.)

The deductibility of insurance premiums is a complex web of rules for particular situations because of Canada’s Income Tax Act (ITA). (You don’t think so? Take a look at the ITA’s index; it’s enough to make your head spin).

Premiums for health, disability, and life insurance are typically not tax deductible for either individuals or corporations. Therefore, until you determine whether your particular circumstance is an exception, you can presume that the answer is no. It’s best to speak with a tax expert to fully understand what tax deductions you qualify for.

When discussing your circumstances with a tax expert, use the information below to help you formulate the question more effectively.

Can I claim a tax deduction for these insurance premiums?

Personalized life insurance

For individuals: Usually not. If you use your life insurance policy as security for a loan, you might be eligible for a tax deduction. Find out from a tax expert or your accountant if it’s feasible for you.

For businesses: It’s the same for businesses as it is for individuals. If a business uses life insurance as collateral for a loan, the premiums can be written off. Once more, seeking tax advice is advised for this.

Buying life insurance

For individuals: No. These premiums are typically paid for by your employer, and they are regarded as taxable income for their staff.

For companies: Does your company cover your employees’ premiums? If so, as long as the premiums are a legitimate business expense, they are tax deductible.

See also: What is the minimum amount of life insurance required?

Life insurance used for Charitable giving

For individuals: No, but if the policy is owned by a charity, you may be eligible for a tax credit for the premiums you pay. A tax credit: what is it? A tax deduction reduces your taxable income, as you may already be aware. On the other hand, a tax credit immediately lowers your tax liability.

What happens if the charity is listed as the beneficiary but you still own the policy? Your estate receives a tax credit for the death benefit that the charity eventually receives, but you do not receive a tax credit for the premiums you pay. (The sum of money given to a beneficiary upon the death of an insured person is known as the death benefit.) If you’re interested in this strategy, please get tax advice.

For companies: Sure, provided the policy is owned by the charity. Once more, please consult a tax advisor regarding this approach.

Read more: 4 simple strategies to increase the impact of your charitable contributions

Employee-owned health or life insurance with employer-paid premiums

For individuals: No. Employer-paid premiums are considered taxable benefits for employees.

For companies: Sure, provided that paying the premiums is a fair business expense.

Key person insurance

For individuals: Not feasible because people are unable to purchase key person insurance to protect themselves. It would be handled similarly to individual insurance in any case.

For companies: No. When a business receives a death benefit, the premiums it pays for health or life insurance are not deductible.

Employer-provided group health insurance for workers

For individuals: No. Taxable employee benefits include income-style long-term care insurance (LTCI) premiums and employer-paid critical illness insurance. Reimbursement-style LTCI, personal health insurance and disability income insurance (DI) premiums paid by the employer are not considered taxable employee benefits.

For companies: Yes, provided that premiums are a fair business expense for companies. However, if premiums are paid for a shareholder who is not an employee, the answer is no.

See also: Is critical illness insurance necessary?

Individuals’ or self-employed people’s health insurance

For individuals: No for disability income insurance, income-style LTCI, or critical illness insurance.

What about LTCI with reimbursement-style coverage for personal health insurance? No, unless you work for yourself, in which case the answer is definitely yes, subject to certain limitations. Premiums for personal health insurance that are not deductible may be used to support a Medical Expense Tax Credit claim.

For companies: Not accessible.

Read more: Do you qualify for a medical expense tax refund?