Is Life Insurance Vatable?

  1. 63333 POINTS
    Peggy Mace
    Most of the U.S.
    Most countries exempt life insurance and other financial services from paying VAT (value added tax)n . If the invoice from the life insurance company shows IPT (insurance premium tax) listed, the policy is probably exempt from VAT. However, there can be exceptions. Talk to your tax consultant to get your answer.
    Answered on July 25, 2013
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  2. 37376 POINTS
    David G. Pipes, CLU®, RICP®
    Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
    If you mean is there a value added tax on life insurance, the answer currently is, “no.”  Insurance particularly life insurance is a program for social good and as a result has long enjoyed preferential tax treatment.  Society recognizes that it is good that people care for their loved ones on the occassion of their death.  They also recognize that if there is an auto collision, it is good if someone can pay the damages.
    Answered on June 18, 2014
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