Life Insurance Relief
Claim for annual insurance premiums paid on life insurance policies.
Qualifying for Life Insurance Relief
To claim this relief for the Year of Assessment (YA) 2020, you must satisfy all these conditions:
- Your total compulsory employee CPF contribution, self-employed Medisave/Voluntary CPF contribution and voluntary cash contribution to your Medisave account in 2019 was less than $5,000;
- You paid insurance premiums in 2019 on your own life insurance policy; and
- The insurance company must have an office or branch in Singapore if your policies are taken on or after 10 August 1973.
Life Insurance relief cannot be claimed on premiums paid on an accident or health policy that provides for the payment of policy monies on the death of a person.
Some examples of premiums that do not qualify for life insurance relief are premiums paid for ElderShield, CashShield Life or Integrated Shield Plans.
If a married man paid for the life insurance policy for his wife, he may also claim the insurance premiums on his wife’s life insurance policy.
Amount of Relief
You are not eligible for Life Insurance Relief for YA 2020 if your total compulsory employee CPF contribution, self-employed Medisave/Voluntary CPF contribution and voluntary cash contribution to your Medisave account in 2019 was $5,000 or more.
If your total compulsory employee CPF contribution, self-employed Medisave/Voluntary CPF contribution and voluntary cash contribution to your Medisave account was less than $5,000 in 2019, you may 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.
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 2019. His total compulsory employee CPF contribution was $1,600.
| Life Insurance Value | $50,000 |
|---|
Annual Premium paid in 2019 | $3,800 |
|---|
Compulsory Employee CPF Contribution | $1,600 |
|---|
Step 1: Calculate the difference between $5,000 and his CPF.
| Maximum Ceiling on Employee CPF Contribution | $5,000 |
|---|
Mr Teo's Compulsory Employee CPF Contribution | $1,600 |
|---|
Difference | $3,400 ($5,000 - $1,600) |
|---|
Step 2: Compare 7% of the insured value against the premium paid.
| Life Insurance Value | $50,000 |
|---|
7% of the Life Insurance Value | $3,500 (7% X $50,000) |
|---|
Total Annual Premium paid in 2019 | $3,800 |
|---|
The lower amount is | $3,500 |
|---|
Step 3: Compare amounts in Step 1 and Step 2. Pick the lower amount.
| Step 1: Difference between $5,000 and Total Compulsory Employee CPF Contribution | $3,400 |
|---|
Step 2: Lower amount of Life Insurance Value and Total Annual Premium | $3,500 |
|---|
The lower amount is | $3,400 |
|---|
Mr Teo is eligible for $3,400 Life Insurance Relief for YA 2020.
How to Claim (e-Filing)
| Is this the first time you are claiming the relief? |
|---|
| Yes | No |
- Login with your SingPass or
IRAS Unique Account (IUA) at
myTax Portal.
- Go to Individuals > “File Income Tax Return”.
- Select “Edit My Tax Form”.
- Go to “4. Deductions, Reliefs and Parenthood Tax Rebate”.
- Go to “Life Insurance”.
- Click “Update” and enter your claim.
| 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 "Life Insurance", click "Update" and revise your claim. |
How to Claim (Paper Filing)
| Is this the first time you are claiming the relief? |
|---|
Yes | No |
Form B1 - Complete item 6(g) on page 2 of Form B1.
- Complete details of the premiums paid in Appendix 2 of Form B1.
| Form B1 Complete item 6(g) on page 2 of Form B1. |
Form B - Complete item 6(g) on page 3 of Form B.
- Complete details of premiums paid in Appendix 3 of Form B.
| Form B
Complete item 6(g) on page 3 of Form B. |