Regarding the deductibility of premiums paid by corporations for individual critical illness policies and individual long-term care policies (without a return of premium rider at maturity) provided to senior executives (non-shareholders) as the beneficiaries, CRA stated:
Where an employer pays insurance premiums for some of its employees, who are the beneficiaries of the insurance, we are of the view that the employer incurs expenses for the purpose of earning income from its business. Consequently, premiums paid by the employer for individual critical illness [or long-term care] insurance policies for certain categories of employees may be deductible from the employer's income.