Whole Of Life Tax Rules

Published / Last Updated on 15/06/2015

Whole Of Life Tax Rules: Protection and Insurance Advice 

Qualification rules for whole of life policies meaning that benefits can be paid tax free

  • The policy must pay a capital sum on death (or earlier disability) with no other benefits
  • Premiums must be paid annually or at shorter intervals i.e.  monthly
  • Premiums must be paid for at least 10 years or earlier death
  • The total premiums paid in any one year must not be more than twice the premiums paid in any other year
  • The total premiums payable in any one year must not exceed one eighth of the total premiums payable over the whole term
  • The amount payable on death must not be less than 75% of the premiums which would be payable if death occurred on the life assureds 75th birthday

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