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

Request expert advice today before making changes to your policy.

Ask Financial Questions for Free

Explore our Site

Money MOT
T and C