facebookAre payouts from insurance/endowment/annuities liable to income tax? - Seedly

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Anonymous

22 Mar 2020

Insurance

Are payouts from insurance/endowment/annuities liable to income tax?

Case scenarios
1 ) Your life insurance matures at age 65 and you redeem the full maturity value, do you need to pay income tax for it?
2) You buy an endowment policy that pays out $2,500 a month do you have to include it as taxable income under income tax?
3) You buy an annuity plan that pays out your capital + earnings over a specific time frame, does the payout come under taxable income?
4) You receive a lump cum payment for C.I due to illness does it also come under taxable income?

Discussion (1)

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Hariz Arthur Maloy

22 Mar 2020

Independent Financial Advisor at Promiseland Independent

Payouts from insurance policies are not taxable in Singapore.

Doesn't matter if its a death payout, a CI payout, a retirement income, or a maturity lumpsum.

However! If the wealth accumulation product was purchased using SRS, then the withdrawal from SRS has it's own tax implications.

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