Of course, all of these exclusions from income come with a price: since lifeinsurance is considered a personal expense, you cannot deduct the premiums you pay for lifeinsurance policies on your federal income tax return.
According to Clarence Wong of Swiss Re, a reinsurer, life-insurance premiums in the first seven months of this year were 39% higher than in the same period in 2002.
In one method, the insured sets up an irrevocable trust to buy a life-insurance policy and pays the premiums by giving sums of money to the trust annually.
However, you may be able to exclude some of the costs of employer-provided lifeinsurancepremiums from income if they are part of a group term lifeinsurance plan.
Sanlam, alife assurer, suggests that firms with comprehensive health policies may also avoid sharp rises in life, disability and medical insurancepremiums.