Expense Category
Human Resources

What expense category does life insurance come under?

There is no definitive answer to this question as it will depend on the specific business and their accounting practices. However, some possible expense categories for life insurance could include:

Protection Expenses

This would include any costs associated with protecting the business from financial loss in the event of the death of a key employee. This could include the cost of the life insurance policy itself, as well as any related legal or administrative fees.

Benefits Expenses

If the life insurance policy is offered as a benefit to employees, then the associated costs would typically be classified as benefits expenses. This could include the cost of the policy itself, as well as any related administrative fees.


Some businesses may choose to classify life insurance costs under a more general category such as "other" or "miscellaneous". As with the other categories, this would include the cost of the policy itself, as well as any related administrative fees.

The information provided in this article does not constitute legal or financial advice and is for general informational purposes only. Please check with an attorney or financial advisor to obtain advice with respect to the content of this article.
“Accurate classification of expenses is vital for businesses as it forms the backbone of financial reporting, tax compliance, and strategic decision-making. It enables businesses to track and analyze their spending patterns, identify cost-saving opportunities, and assess the profitability of various operations or projects. Having a single source to turn to for accounting classification suggestions, such as the Ramp Expense Classifier tool, is immensely helpful as it provides consistency, reduces ambiguity, and streamlines the expense classification process.”
Audrey Carroll
Senior Manager, Accounting, Ramp

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