UK Life Insurance from Insurance Central

  
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Life Insurance and Income Tax

Life Insurance and Income Tax

 

As long as your policy is a “qualifying policy” the benefits paid on death or maturity are not subject to income tax.

 

To qualify for this a policy has to satisfy certain conditions. These conditions include the need to pay premiums at annual or shorter intervals for at least ten years or until your earlier death. Your insurance adviser will tell you whether or not your life insurance policy is a qualifying one.

 

The surrender of an insurance policy during the first ten years can result in a liability to pay some income tax.

 

 

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