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Qualifying term assurance question

Does pure protection policy have qualifying status and income tax chargable?

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Hi,

There is requirement for qualifying life policy to have annual premium of no more than £3600. For non-qualifying policy the payout is subject to income tax. Does this apply to pure protection insurance like vanilla term assurance?

For example, if a customer purchase a life + critical illness policy with annual premium over £3600, will the beneficiary have to pay income tax on the potential benefit?

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By frankfx
07th Jun 2021 10:48

What does the broker and or life office have to say?
They are making a profit from this service.

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