# Insurance - taxable benefit or not?



## jtmann (Nov 5, 2009)

Insurance - taxable benefit or not?

Hi all:

At work I have group insurance coverage that includes dental, ADD and Life. The cost of this is split between me and employer. I just got my T4. 

What types of insurance are considered a taxable benefit?

Thanks!


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## FrugalTrader (Oct 13, 2008)

My understanding is that if the employee pays for any part of the insurance premiums that they are not considered taxable benefits.


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## OhGreatGuru (May 24, 2009)

This varies with the type of insurance and the province you are in. See http://www.benefits.org/interface/benefit/tax-income.htm for example.

Generally speaking, life insurance premiums are a taxable benefit federally & provincially. Other types of insurance premiums are not subject to federal income tax; and are not subject to provincial income tax in most provinces except Quebec.


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## Accter (Jan 29, 2010)

Generally a good rule of thumb with insurance (and other similar items) is if the payments are deductible then the income is taxable but if the payments aren't deductible then the income won't be taxable.


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