What percentage of personal life insurance premiums is typically deductible for federal income tax purposes?

The percentage of personal life insurance premiums that is typically deductible for federal income tax purposes is 0%. This means that individuals cannot deduct the premiums they pay for personal life insurance coverage when filing their federal income tax returns.

The reasoning behind this is that life insurance is considered a personal expense rather than a business expense, and personal expenses are generally not deductible according to federal tax laws. There are exceptions for certain types of life insurance premiums paid for business-related policies, such as key person insurance or when the business is the beneficiary, but for personal life insurance, no deduction is permitted.

Understanding this concept is crucial for financial planning, as individuals should consider the tax implications of life insurance when making decisions about their policies.