What tax applies to gains from a non-qualifying life policy?
Income tax
(Basic rate treated as paid)
What tax applies to gains inside a UK insurers life fund?
Corporation tax at 20%
When is a life policy surrender a chargeable event?
When non-qualifying policy is surrendered or a qualifying policy loses status
Are critical illness lump sums taxable?
No
Free from income tax and capital gains tax
What tax applies to second hand life policies
Capital gains tax
Who is liable for a chargeable event gain?
The policyholder or beneficial owner
Are life insurance policy premiums gifts for Inheritance Tax purposes?
Yes
Often exempt under normal expenditure out of income
When does a qualifying policy lose it’s tax- free status?
If surrendered before 3/4 of the policy term
Typical maximum individual income protection benefit?
About 50-60% of gross earnings
When does group income protection usually pay until?
Recovery
Leaving service
Retirement
When should a claim be notified to start the deferred period?
ASAP
What is the strictest definition of incapacity?
Unable to look after oneself ever again
What occupation is used for incapacity definition?
The occupation immediately prior to claim
When does waiver of premium end?
Return to work
Policy expiry
Specified age
Typical survival period range?
14-30 days
When can buy-back be available after a CI claim?
Usually after 2 years
How are CI benefits taxed?
Tax-free
NI years required for full new State Pension
35 years
Who qualifies for Statutory Sick Pay?
Employees paying or credited with class 1 NI
West determines eligibility for Personal Independence Payment?
Assessment of individual need
(Not means tested)
Pension credit after April 2016 consists mainly of?
Guarantee Credit
Child tax credit claims can usually be backdated how long?
One month
What is decreasing term assurance mainly used for?
Repayment Mortgages
What is increasing term assurance used for?
Inflation protection
