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Qualifying policy |
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Qualifying policyThe proceeds from a life assurance policy to an individual are free of tax provided the policy is qualifying. The rules which govern qualification are: a) The premiums must be payable for ten years or 75% of the term whichever is the shorter. For example a ten year endowment plan will qualify after seven and a half years. b) The premiums must be paid regularly on an annual or more frequent basis such as monthly. c) The sum assured must be at least 75% of the total premiums payable over the life of the policy.Similar MatchesQualifying stock optionQualifying stock optionA benefit granted by a corporation that allows employees to purchase shares at a discount price. Qualifying shareQualifying shareShares of common stock that a person must hold in order to qualify as a director of the issuing corporation. Qualifying annuityQualifying annuityAn annuity allowable as investment for a qualified plan or trust. Nonqualifying stock optionNonqualifying stock optionAn employee stock option that does not satisfy IRS qualifying rules and therefore is liable for taxation upon exercise . Qualifying annuityQualifying annuityAn annuity which is purchased within a qualified plan. Further Suggestionsnon qualifying life policyNonqualifying annuity |
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