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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