Life Insurance Relief is given on annual insurance premiums paid on life assurance policies bought on your life or the life of your wife.
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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 year 2012 is less than $5,000.
- You paid insurance premiums in the year 2012 on your own life assurance policies or on insurance (of which you are the policy holder) bought on your wife's life.
- 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 this relief if you satisfy all the conditions above. However, no relief will be given for insurance premiums that you have 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.
How much you can claim
You are not eligible for Life Insurance Relief for the Year of Assessment 2013 if your total compulsory employee CPF contribution in the year 2012 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; or
- 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 the year 2012. His total compulsory employee CPF contribution is $1,600.
Step 1:
Calculate the difference between $5,000 and his CPF.
Difference = $5,000 - $1,600 = $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.
Mr Teo is eligible for $3,400 Life Insurance Relief for the Year of Assessment 2013.
How to claim
When are you making the claim?
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Is this the first time you are claiming the relief?
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Yes*
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No
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When filing your tax return online
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1. Go to Main Tax Form
2. Go to item 6-20 Total Deductions And Reliefs
3. Click on Change, remove or make new claims for Deductions, Reliefs and Rebates. (e.g. Donations, CPF, spouse, child reliefs and Parenthood Tax Rebate)
4. Go to item 14 Life Insurance and enter your claim.
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If the relief has been allowed to you last year, this relief will be pre-filled and allowed to you automatically this year.
If you need to make any changes, go to item 14 Life Insurance and revise your claim.
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When completing your paper tax return
(Form B1 or Form B)
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Form B1
1. Complete item 6(g) on page 2 of Form B1.
2. Complete details of the premiums paid in Appendix 2 of Form B1.
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Form B1
Complete item 6(g) on page 2 of Form B1.
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Form B
1. Complete item 6(g) on page 3 of Form B.
2. Complete details of premiums paid in Appendix 3 of Form B.
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Form B
Complete item 6(g) on page 3 of Form B.
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FAQ
Q1. I have filed my tax return for the Year of Assessment (YA) 2013. What should I do if I have forgotten to claim or need to revise my claim for Life Insurance Relief (LIR)?
(a) If you have filed your tax return online
You may re-file within 14 days of your previous submission or by 18 Apr 2013, whichever is the earlier. You can only re-file once.
When you re-file, you must include all your income details and expenses, donations and relief claims, where applicable. Once you have re-filed successfully, your new submission will override the previous submission.
If you could not re-file, please write to us by email, fax or post, stating:
For claiming / revising LIR |
For withdrawing LIR |
(i) your request to claim or revise the relief for YA 2013;
(ii) the amount of relief that you wish to claim or revise;
(iii) the amount of insurance premium paid in the year 2012;
(iv) the amount of insured value of the policy;
(v) name of the insurance company;
(vi) name of the insured person; and
(vii) confirmation that you have met the qualifying conditions.
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(i) your request to withdraw the relief for YA 2013.
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(b) If you have filed a paper tax return
Please write to us by
email,
fax or
post, stating the above details in (a).
Please write to us by email, fax or post within 30 days from the date of your tax bill, stating:
For claiming / revising LIR |
For withdrawing LIR |
(i) your request to claim or revise the relief for YA 2013;
(ii) the amount of relief that you wish to claim or revise;
(iii) the amount of insurance premium paid in the year 2012;
(iv) the amount of insured value of the policy;
(v) name of the insurance company;
(vi) name of the insured person; and
(vii) confirmation that you have met the qualifying conditions.
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(i) your request to withdraw the relief for YA 2013.
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