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Disability and critical illness insurance, are they tax deductible?

Posted 29 October 2012 under Tax Questions



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I have these policies with Momentum and i just want to confirm if they are tax deductable? Although the policy is not an income protection policy it still plays the same roll should i not be able to work. I did request a tax certificate from Momentum but i'm still waiting and christmas is also coming :)

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TaxTimTaxTim says:
21 October 2012 at 1:08

The Income Tax Act says:
any deduction which is allowable under section 11 (a) in respect of any premium paid by that person in terms of an insurance policy, to the extent that?%u20AC%u201D
(aa)
it covers that person against the loss of income as a result of illness, injury, disability or unemployment;

Basically if you have a policy that will pay you out if you cannot work because of any of the above then the premiums are deductible. However only if that payout is taxed if you do ever get paid will you be able to deduct the premiums, so be sure to ask Momentum if this is the case.


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