IN4014 - Week 9 - Lec 2 PDF

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IN4014 – Life Insurance Week 9 – Lec 2

Taxation Death Proceeds:  Mostly exempt from income taxation of death proceeds under a certain amount  Belgium – benefits taxable on policies for which a *tax deduction was taken on premium pay  To give people an insentitive to get life insurance  Most countries life insurance death proceeds are subject to estate duties  Netherlands – beneficiary is exempt from estate duties if they were paying the premium  Ireland ARF – *30% tax on unwinding of fund  Unwind the ARF to a estate, it gets taxed 30%

Life Insurance Companies Premium Taxation:  Most countries (OECD and Developing) levy taxes on insurers’ premium revenues  *insurer is responsible for tax payment in most cases  Although insurer pays, it affects the policyholder  Price and attractiveness of insurance products  Rates vary from Sweden (15%)(foreign owned – domestic is 0%) to Japan (...