Every year, a large volume of insurance is bought in the final quarter for tax reasons. Some of it is sensible. A lot of it is cover nobody needed, bought in a hurry against a deadline.
What the relief generally looks like
Life and health insurance premiums have historically attracted deductions under the relevant sections, with separate limits and an additional allowance for premiums paid for senior citizen parents. Death benefits have generally been exempt, and maturity proceeds are subject to conditions on the premium-to-sum-assured ratio.
Why the numbers keep moving
Limits, sections and conditions change with each Finance Act, and the treatment differs depending on which tax regime you have opted for and when the policy was issued. Anything you read online — including this article — is a general description rather than current advice.
The order of decisions
Establish what protection you need. Choose the product that provides it. Then take the tax relief that follows. Reversing that order is how people end up with several small policies, none of which would carry the family.
This article is general information, not tax advice. Please confirm the current position with a qualified tax advisor before relying on any treatment described here.