'Life insurance relief' is a relief on annual insurance premiums paid on your own or your wife's life assurance policies.
Who can claim
You can apply 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 or your wife's life assurance policies.
- 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 apply 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
No relief will be given for insurance premiums paid on your children's life assurance policies. However, you can apply for qualifying/handicapped child relief or working mother's child relief.
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.
Example
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 2009. 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.
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.
Mr Teo should claim life insurance relief of $3,400 for Year of Assessment 2010.
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.
Find out more about how to submit your tax return.