Whole Of Life Tax Rules

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.