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E1.1320 Qualifying whole life and term assurances

This article explains the conditions which a whole life or term assurance policy must satisfy in order to be a qualifying policy. Life assurance premium relief is abolished in respect of all policies with effect from, broadly, 6 April 2015 (see E1.1300).

For the purposes of this article 'event' means 'death' or 'death or earlier disability'; a capital sum includes a series of capital sums; and a policy still secures a capital sum on death or disability even though it may vary with the misfortune¹. The 'benefits specifically permitted' are certain benefits commonly found in life assurance policies, namely: benefits (including capital benefits) in case of a person's disability; the right to participate in profits; a guaranteed surrender value; an option to receive payments in the form of an annuity; the waiver of premiums in the case of a person's disability; and a provision for further insurance without proof of insurability².

A policy securing a capital sum only on death (or on death or earlier