If premiums for life insurance are deducted, the death benefit will become taxable at the time of claim. Therefore, in most situations you are better off paying for your life insurance premiums with after tax dollars from a personal account.
There is one exception: If your beneficiary is a charitable organization. If you choose to name a charitable organization/non-profit as your primary beneficiary, you may deduct the premiums and the benefits will be paid to the organization on a tax free basis.
For more information about taxability of life and disability insurance, contact Set for Life Insurance today!