Life Insurance Relief is given to individuals who paid annual insurance premiums on their own life insurance policies.
On this page:
Qualifying for relief
You may claim Life Insurance Relief for the Year of Assessment (YA) 2023 if you satisfy all these conditions:
| S/N | For YA 2022 & Before | New! 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 contributions | Total amount of contributions from YA 2023 onwards | Amount of Life Insurance Relief allowed |
|---|---|---|
| a. Compulsory employee CPF contribution; and b. Self-employed Medisave/voluntary CPF contribution. | $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 contributions | Total amount of contributions in the year preceding the YA | Amount 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 2022. His total compulsory employee CPF contribution was $1,600.
| Life insurance value | $50,000 |
|---|---|
Annual premium paid in 2022 | $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 2022 | $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 2023.
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 policy | Critical illness rider | Total |
|---|---|---|
$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?
| Yes | No |
|---|---|
| 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?
| Yes | No |
|---|---|
Form B1 & B
| 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:
- your request to claim or revise the relief;
- the amount of relief that you wish to claim or revise;
- the amount of insurance premium paid in the previous year;
- the amount of insured value of the policy;
- the name of the insurance company;
- the name of the insured person; and
- your confirmation that you have met the qualifying conditions.
You may also email us your request to withdraw your relief claim.