Endowment Tax Rules

Published / Last Updated on 15/06/2015

Endowment Tax Rules: Protection and Insurance Advice

Qualification rules for endowment policies meaning that benefits can be paid tax free

  • The policy must pay a capital sum on survival to the end of the term or on earlier death
  • 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 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 the policy ran for its whole term

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