Life Insurance Relief is given to individuals who paid annual insurance premiums on their own life insurance policies.

Qualifying for relief

You may claim Life Insurance Relief for the Year of Assessment (YA) 2022 if you satisfy all these conditions:

S/NFor YA 2022 & BeforeNew! From YA 2023 Onwards
1.

The total CPF contribution for the following was less than $5,000 in the year preceding the YA:

a. Compulsory employee’s CPF contribution;

b. Compulsory Medisave / voluntary CPF contribution as a self-employed individual;

c. Voluntary cash contribution to your Medisave account;

 

The total CPF contribution for the following was less than $5,000 in the year preceding the YA:

a. Compulsory employee’s CPF contribution;

b. Compulsory Medisave / voluntary CPF contribution as a self-employed individual;


2.

You paid insurance premiums on your own life insurance policy.

For married men

If you have paid for your wife’s life insurance policy, you may also claim the insurance premiums paid.

3.The insurance company must have an office or branch in Singapore^ if your policies are taken on or after 10 August 1973.
 
^ The office or branch of the insurance company in Singapore should generally be performing the same range of activities as the overseas insurance company (in which the life insurance policy were purchased)


Examples of insurance policies/ riders that do not qualify for Life Insurance Relief:

  • Accident insurance policy
  • Hospitalisation policy
  • Health insurance policy such as MediShield, Integrated Shield Plans etc.
  • Disability insurance policy such as ElderShield, CareShield Life etc.
  • Riders under life insurance policy (e.g total and permanent disability riders, critical illness rider, premium waiver riders, etc.)
  • Critical illness policy
  • Endowment policy

Amount of relief

New! From YA 2023 onwards

The voluntary cash contribution to your Medisave account is not considered for the $5,000 limit for the total CPF contribution for YA 2023 onwards.

From YA 2023 onwards

Types of contributionsTotal amount of contributions from YA 2023 onwardsAmount of Life Insurance Relief allowed
a.  Compulsory employee CPF contribution;

b.  Self-employed Medisave/voluntary CPF contribution; and

$5,000 or more

Nil

Less than $5,000

You may claim the lower of:

a.  the difference between $5,000 and your CPF contribution; or

b.  up to 7% of the insured value of your own/your wife's life, or the amount of insurance premiums paid.

For YA 2022 and before

Types of contributionsTotal amount of contributions in the year preceding the YAAmount of Life Insurance Relief allowed
a.  Compulsory employee CPF contribution;

b.  Self-employed Medisave/voluntary CPF contribution; and

c.  Voluntary cash contribution to your Medisave account.

$5,000 or more

Nil

Less than $5,000

You may claim the lower of:

a.  the difference between $5,000 and your CPF contribution; or

b.  up to 7% of the insured value of your own/your wife's life, or the amount of insurance premiums paid.

Example 1: Total compulsory CPF contribution is less than $5,000

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 2021. His total compulsory employee CPF contribution was $1,600.

Life insurance value

$50,000

Annual premium paid in 2021

$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 2021

$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 Life Insurance Relief of $3,400 for Year of Assessment 2022.

Example 2: Life insurance policy with other non-claimable components

Mrs Chan bought a whole life insurance policy valued at $100,000. She also added on a critical illness rider of $50,000. The premiums she has paid for are as follows:

Life insurance policyCritical illness riderTotal

$1,500

$500

$2,000

Assuming all other conditions are met, she can only claim for the premiums paid on the whole life insurance policy (i.e. $1,500; excluding the critical illness rider) for Life Insurance Relief

Note: You may check with your insurance agent on the breakdown of the premium payment.

How to claim

e-Filing

Is this the first time you are claiming the relief?

YesNo
  1. Login with your Singpass or Singpass Foreign user Account (SFA) at myTax Portal.
  2. Go to “Individuals” > “File Income Tax Return”.
  3. Select “Edit My Tax Form”.
  4. Go to “4. Deductions, Reliefs and Parenthood Tax Rebate”.
  5. Go to “Life Insurance”.
  6. Click “Update” and enter your claim.

If the relief has been allowed to you last year, the amount will be pre-filled and granted to you automatically this year.

Follow the steps on the left if you need to make any changes to your relief.

 

Paper filing

Is this the first time you are claiming the relief?

YesNo

Form B1 & B

  1. Complete the item on “Life Insurance Relief”.
  2. Complete the details of the premiums paid in Appendix 2.

Form B1 & B

Complete the item on “Life Insurance Relief”.

FAQs

I have filed my Income Tax Return. What should I do if I have forgotten to claim, or need to amend my claim for Life Insurance Relief?

1. If you e-Filed your Income Tax Return

Please re-file within 7 days of your previous submission or by 18 Apr, whichever is earlier. You will only be able to re-file once. When you re-file, you must include all your income details, expenses, donations and relief claims, where applicable. Once you have re-filed successfully, your new submission will override the previous submission.

2. If you filed a paper Income Tax Return or are unable to re-file online

Please email us:

a. your request to claim or revise the relief;

b. the amount of relief that you wish to claim or revise;

c. the amount of insurance premium paid in the previous year;

d. the amount of insured value of the policy;

e. the name of the insurance company;

f. the name of the insured person; and

g. your confirmation that you have met the qualifying conditions.

I have received my tax bill for the current Year of Assessment. What should I do if I need to amend my claim for Life Insurance Relief?

Please file an amendment using the “Object to Assessment” digital service at myTax Portal within 30 days from the date of your tax bill.

If you are unable to use the digital service, you may email us:

  1. your request to claim or revise the relief;
  2. the amount of relief that you wish to claim or revise;
  3. the amount of insurance premium paid in the previous year;
  4. the amount of insured value of the policy;
  5. the name of the insurance company;
  6. the name of the insured person; and
  7. your confirmation that you have met the qualifying conditions.

You may also email us your request to withdraw your relief claim.

I have paid the premiums for my life insurance policy in foreign currency. How should I convert the amount to Singapore dollar?

If you had paid the premiums for your life insurance policy in foreign currency, you need to convert the amount to Singapore dollar before calculating the amount of Life Insurance Relief that you may claim (assuming all other qualifying conditions are met).

You may refer to the MAS website to convert the premiums that you had paid from foreign currency to Singapore dollar.