From Year of Assessment (YA) 2026, Singapore’s Life Insurance Relief has been broadened so that a wife may claim relief for qualifying premiums she pays on her husband’s life insurance policy. The change removes the previous difference in treatment, under which premiums paid by a husband for his wife’s policy could qualify, but the reverse arrangement did not.
Impact of the change
Wider eligibility for married taxpayers
The revised treatment may benefit wives who are responsible for paying premiums on life insurance policies covering their husbands. Provided the general qualifying conditions are met, such payments may now be included when determining the wife’s Life Insurance Relief for YA 2026 onwards.
The change applies to premiums paid during the calendar year preceding the relevant YA. Accordingly, a YA 2026 claim generally relates to qualifying premiums and CPF contributions for 2025.
Existing eligibility conditions continue to apply
The extension does not create an automatic deduction for all premiums paid on a spouse’s policy. A claimant must continue to satisfy the broader conditions for Life Insurance Relief, including the following:
- The premiums must be paid on a qualifying life insurance policy covering the claimant or the claimant’s spouse.
- For policies taken out on or after 10 August 1973, the insurer must generally maintain an office or branch in Singapore.
- The claimant’s relevant compulsory CPF, MediSave and voluntary CPF contributions for the preceding year must be below S$5,000.
Where the relevant CPF contributions are S$5,000 or more, no Life Insurance Relief is available.
Amount of relief remains subject to limits
For an eligible taxpayer whose relevant CPF contributions are below S$5,000, the relief is generally restricted to the lowest of:
- The difference between S$5,000 and the taxpayer’s relevant CPF contributions;
- 7% of the insured value of the claimant’s or spouse’s life; and
- The qualifying premiums actually paid.
The legislative change expands whose spousal policy payments may be taken into account; it does not alter the existing computational limits.
Limited financial-reporting impact
The amendment concerns personal income tax relief and does not generally affect the recognition or measurement of insurance contracts in an employer’s or insurer’s financial statements.
However, accounting firms, family offices and employers providing personal tax support may need to update tax questionnaires, filing procedures and employee guidance to reflect the expanded eligibility.
Practical issues
- Evidence of payment: The wife should be able to demonstrate that she paid the qualifying premiums. Policy schedules, premium notices, receipts and bank or credit-card records should be retained.
- Identification of the insured person: Advisers should distinguish between the policy owner, premium payer and life insured. Eligibility should not be assumed solely because the policy concerns the claimant’s husband.
- Separation of non-qualifying components: Premiums attributable to accident, hospitalisation, health, disability or critical-illness coverage, as well as certain riders and investment-linked components, may not qualify. A breakdown may need to be obtained from the insurer or insurance adviser.
- CPF contribution threshold: Taxpayers should verify their relevant CPF and MediSave contributions before calculating the claim. Many employees with contributions of at least S$5,000 will remain ineligible despite the expanded spousal coverage.
- Pre-filled claims: A previously granted relief may be pre-filled in the taxpayer’s return. Taxpayers should review the amount rather than assume that the pre-filled figure reflects a new claim involving a husband’s policy.
- Foreign-currency premiums: Premiums paid in a foreign currency must be translated into Singapore dollars before the relief is calculated.
- Tax-return amendments: Where an eligible claim is omitted, the taxpayer may generally re-file electronically by the applicable deadline or request an amendment after receiving the tax bill, subject to IRAS procedures and time limits.
Action points
Taxpayers and tax advisers should review life insurance arrangements involving premiums paid by wives for their husbands’ policies when preparing YA 2026 individual income tax returns. Engagement checklists, tax software logic and client communications should also be updated so that eligible claims are identified while existing CPF thresholds, policy restrictions and computational limits continue to be applied correctly.
Source: IRAS, 30 July 2026.