Endowment insurance popular poems ... Next month, tax-free benefits reduced

[Gimmingyeong financial newspaper reporter Korea] The exemption limit for next month savings insurance is reduced. Many insurers in the state Spiral 'constitutional improvement, protection-type insurance to early to consider changing legislation and the need to raise capital.

The Ministry of Strategy and Finance has resolved to modify some of the amendments to the Tax Decree of information to reduce the tax-free benefits of earlier this year, long-term savings insurance contained. Accordingly, until April Endowment insurance ilsinap sold 100 million won from, monthly payment may be less than 1.5 million won tax exemption benefits only May.

Up to previous savings insurance gotta release a representative of insurance products for retirement compared to their citizens as well as annuity insurance ilsinap 200 million won per capita premiums, monthly installment insurance offered unlimited tax-free benefits when kept for more than 10 years.

But will the benefits are greatly reduced as the point that is being exploited as a means of tax evasion raised some high earners.

Life insurers were initially opposition's castration. The savings-type insurance sales proportion of high insurance agent (FC) also emphasizes the right to life guaranteed, and asked to withdraw the amendment.

But in 2021 IFRS17 (New International Financial Reporting Standards) soft landing measures introduced in the recapitalization needs to be strengthened, including the regulation of RBC Financial authorities prophet thickening insurers were simultaneously changing the route to enhanced protection-type insurance.

Financial authorities also tax-free reduction policy is a pure protection-type insurance, including savings insurance, life insurance, which insurance arbitrage when halfway terminated in accordance with its original purpose that to regulate the insurance of financial products nature has occurred is unrelated to tax exemption reduced the policy of long-term savings insurance profits it was a non-taxable benefit period.

In addition to life annuities among savings insurance product lines can receive tax-free benefits beyond next month. Life imprisonment pension insurance is terminated midway possible instead of being paid a pension from age 55 until death, and the products are insurance contracts and pension funds disappear when the subscriber is dead.



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