Exemption from income tax is available for benefits received under policies covering health risks, and inability to work or loss of office, where the premiums are paid out of taxed income and the benefit is paid to the person insured1.
A policy insures against a health risk if it insures against a physical or mental illness, disability, infirmity or defect or any deterioration in such a condition. A policy insures against an employment risk if it insures against an individual ceasing to be employed or hold office, or carry on a trade, profession or vocation2.
Policies may be taken out by an individual, an employer, or the self-employed, but see below where the policy is not taken out by the person
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Web page updated on 17 Mar 2025 17:11