Taxation of insurance premiums and benefits 101

As tax season approaches, it's crucial to ensure your insurance premiums are paid tax efficiently and comply with the Canada Revenue Agency (CRA) guidelines. For unincorporated individuals, premiums are paid with after-tax dollars, while incorporated physicians can deduct premiums depending on the insurance type. Benefits from negotiated payments are taxable, and life insurance premiums may not be tax-deductible unless assigned to a loan. Health and dental insurance premiums are tax-deductible, with benefits received being tax-free. Consult your accountant for personalized advice.