Insurance carries tax advantages, but they change with each Finance Act and depend on your personal circumstances, the policy date and the tax regime you have opted for.
Premiums
Life insurance premiums and health insurance premiums have historically attracted deductions under the relevant sections of the Income Tax Act, with separate limits and an additional allowance for premiums paid for senior citizen parents.
Proceeds
Death benefits have generally been exempt. Maturity proceeds are subject to conditions relating to the premium-to-sum-assured ratio and, for higher-premium policies, more recent restrictions.
Business premiums
Keyman insurance and group cover premiums are generally treated as a business expense, subject to conditions.
This page is general information, not tax advice. Limits, sections and conditions change. Please confirm the current position with a qualified tax advisor, and read the policy documents, before relying on any tax treatment.