For your info. (Source:http://www.iras.gov.sg)
‘Life insurance relief’ is a relief on annual insurance premiums paid on your own life assurance policies or on insurance bought on the life of your wife and you are the policy holder of the insurance.
Who can claim
You can claim for this relief if you satisfy ALL the conditions below:
- Your total compulsory employee CPF contribution or self-employed Medisave/Voluntary CPF contribution or both in the previous year is less than $5,000.
- You paid insurance premiums on your own life assurance policies or on insurance bought on the life of your wife and you are the policy holder of the insurance.
- The insurance company must have an office or branch in Singapore if your policies are taken on or after 10 August 1973.
If you are a married female
You can claim for this relief if you satisfy ALL the conditions above. However, no relief will be given for insurance premiums paid on your husband’s life assurance policies.
If you have children
How much you can claim
You are not eligible for life insurance relief if your total compulsory employee CPF contribution in the previous year is $5,000 or more.
If your CPF contribution is less than $5,000, you can claim the lower of
- The difference between $5,000 and your CPF contribution.
- Up to 7% of the insured value of your own/your wife’s life or the amount of insurance premiums paid, whichever is lower.
Mr Teo bought a life insurance policy for himself. The insured value of his life is $50,000. He paid annual premiums of $3,800 in year 2011. His total compulsory employee CPF contribution is $1,600.
Step 1: Calculate the difference between $5,000 and his CPF.
- Mr Teo’s CPF contribution is $1,600.
- $5,000 – $1,600 is $3,400.
Mr Teo can claim up to $3,400 in Life insurance relief.
Step 2: Compare 7% of insured value and premium paid. Pick the lower.
- 7% of Mr Teo’s insured value ($50,000) is $3,500.
- Premium paid is $3,800.
We should take $3,500 which is the lower amount.
Step 3: Compare amount in Step 1 and 2. Pick the lower.
In Year of Assessment 2012, Mr Teo is eligible for $3,400 life insurance relief.
How to claim
You need to enter your claim under ‘life insurance‘ in your tax return.
If you are claiming for the first-time
- If you submit paper tax return, please enter details of your claim in Appendix 2 of the tax return and submit together with your tax return.
- If you e-File your tax return, you need to click on the ‘HERE’ button under ’14. Life insurance’ on ‘Deductions and Reliefs’ page to enter the details of your claim.