Term Assurance Tax Rules Over 10 Years

Published / Last Updated on 15/06/2015

Term Assurance Tax Rules: Protection and Insurance Advice

Qualification rules for term assurance policies of terms of over 10 years meaning that benefits can be paid tax free

  • The policy must secure a capital sum on death or earlier disability
  • 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 death were to occur on the life assured's 75th birthday

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