What kind of life insurance can you buy to get a tax deduction

As we enter the end of the year, tax matters come into focus. Many people begin calculating their own taxes and looking for ways to reduce taxes. Some may have significant expenses and use them for tax deductions. Life insurance is also a popular method for tax deduction. Let’s take a look at which types of life insurance can be used to claim tax deductions.

Why Can Travel Insurance Be Used to Claim Tax Deductions?

Life insurance can be used to claim tax deductions because it serves as a way to boost individuals to secure financial protection for themselves and their families. The government encourages people to invest in life insurance to ensure financial security for their loved ones. This reduces the potential burden on the government. Some life insurance policies offer a savings or investment component. And again, the government may provide tax deductions to support people to save for the long term, which can help reduce reliance on public welfare programs.

Which Life Insurance Can Be Used for Tax Deductions.

Life insurance that can be tax deductible must be life insurance with coverage for 10 years or more. There are 2 types of life insurance that can be used for tax deductions.

1. General Life Insurance.

It can be used for tax deductions up to 100,000 Baht.

1.1 Whole Life Insurance.

Whole life insurance is a type of permanent life insurance that provides coverage for the entire lifetime of the insured person as long as the premiums are made. The premium payment period will be approximately 10-20 years. The premium will be accumulated into a fund after deducting expenses and the fee to be returned as interest to the insured person or their families.

1.2 Term Life Insurance.

Term life insurance is a type of life insurance that provides coverage for a specific term or period(10, 20, or 30 years). If the insured passes away during the term of the policy, a death benefit will be paid out to the beneficiaries.

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1.3 Endowment Life Insurance.

Endowment life insurance is a type of insurance that combines life insurance coverage with a savings or investment component. Endowment policies offer coverage for a specified period(10, 15 or 20 years) but also guarantee a payout to the policyholder, either upon the policy’s maturity or the insured person’s death. The insured must pay the premium annually and when the policy expires, the insured will get the accumulated money back.

2. Annuity Life Insurance.

Annuities, also known as retirement life insurance, are often used as a part of retirement planning to ensure a consistent income during the insured’s retirement years. It is designed to provide income during retirement. When the specified age, as stated in the policy, is reached, the insured will receive the retirement funds according to the policy(monthly or annually). It also can be used for tax deductions such as when the insured reaches the ages of 60 to 80 years old or beyond, Retirement life insurance policies can offer tax deductions up to 15% of the income, not exceeding 200,000 THB.

Life Insurance From dSurance.

If you are looking for life insurance with the coverage you need, we would like to present you to ‘A DIY Life Insurance’ from dSurance. It is a life insurance policy that allows you to customize coverage to suit your lifestyle. You can choose from up to 3 different coverage options and coverage periods based on your needs. In the event of loss of life, the beneficiary will receive compensation to help ease the financial burden. Additionally, you can choose a supplementary income compensation plan, which provides daily compensation when hospitalized due to accidents or illness, with coverage for up to 365 days. You can also opt for a supplementary coverage plan for 10 critical illnesses, which provides coverage for medical expenses when diagnosed with a severe illness. This way you will get all the coverage you want and also with a reasonable and affordable price. Importantly, DIY insurance can be used to claim tax deductions as well.

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Claiming tax deductions from life insurance is something worth knowing, as each tax payment is an amount of money that contributes to the country’s development. The life insurance premiums you pay should cover life protection, support healthcare expenses and be eligible for tax deductions. Therefore, before purchasing life insurance, it is essential to compare the benefits. Choosing to purchase insurance with dSurance can be one of the options to ensure you get the most coverage according to your needs and lifestyle and is worth your money.