Life Insurance Policy

Life Insurance

Life insurance is a contract between the policy owner and the insurer, where the insurer agrees to pay a sum of money upon the occurrence of the insured individual's death or other event, such as terminal illness or critical illness. In return, the policy owner agrees to pay a stipulated amount called a premium at regular intervals or in lump sums. There may be designs in some countries where bills and death expenses plus catering for after funeral expenses should be included in Policy Premium.

Life assurance premium relief

It is a tax break that may apply to life assurance policies that provide for a capital sum to be paid on death, where the policy commenced prior to 14 March 1984. It is due in respect of premiums payable under any such life assurance policy issued in respect of an insurance made before 20 March 1968. For such policies entered into between 20 March 1968 and 13 March 1984, the policy must also be a qualifying policy. "Qualifying policy" is defined in Schedule 15 of the Income and Corporation Taxes Act 1988.