- Each would have the same positive impact (43%)
- Tax deductible life insurance premiums (33%)
- Tax deductible financial advice (21%)
- Not sure (3%)
Our latest poll tells us that advisers would equally embrace the opportunity for their clients to access tax deductions on insurance premiums or the cost of financial advice.
So far, 54% of advisers have said that tax deductible insurance premiums and financial advice costs would have an equally beneficial positive impact on their advice practice. Of those who favour one above the other, 29% indicated their preference that tax deductible insurance premiums would have a greater benefit for their practice, while only 12% said they would prefer to see the cost of financial advice made tax deductible, in preference to insurance premiums. This preference towards tax deductible insurance premiums is not surprising, given the focus of our publication, and it is a ‘given’ that all financial advisers would support both tax deductible risk premiums as well as advice fees.
Renewed calls have been made recently for tax deductions to be given to consumers to assist with affordability of both insurance premiums and advice fees (see: Renewed Call for Tax Deductible Financial Advice and Call for Radical Re-think on Underinsurance) . These calls have been made amid recent concerns expressed for the long-term sustainability of the life insurance industry under its existing structure. Any tax deductions on either insurance premiums or advice fees would prove to be a shot in the arm for the sector, if the Government can find a way to accommodate reduced taxation revenue, possibly by way of related savings on the cost of social welfare.
Within the debate, advisers are displaying a slight preference towards tax deductible insurance premiums. But the over-riding message from advisers, we think, is to bring on any tax deductions in future, if they are at all possible.
Our poll remains open for another week. Let us know what you think…
