Jakarta, CNBC Indonesia – Are you a life insurance customer? Maybe you are wondering whether you need to report a life insurance policy on your annual tax return (SPT)?
Life insurance itself is divided into traditional life insurance, dual-purpose life insurance, and unit-link life insurance.
Traditional and endowment life insurance is insurance that provides sum assured benefits when the insured experiences total permanent disability or dies, during the contract period. The premium paid will of course be forfeited when the contract period ends.
The difference between traditional and dual-purpose is that dual-purpose life insurance can provide cash benefits even if the insured is still alive until the end of the contract period.
Therefore, if you have traditional and endowment life insurance, you don't need to report it in the assets section.
Meanwhile, premium payments are also not a deduction from income in calculating personal income tax. Therefore, you do not need to report it on your SPT.
So what's going on with Paydi insurance or what is often called unit link? Following is the discussion.
So what about Unit Link?
Through the premium you pay, unit link insurance will form an investment unit of which you can find out the number, as well as the average net asset value per unit obtained. You can also withdraw investment units in this insurance whenever you need it.
Considering that unit link is a mixed product between insurance and investment, if you have one, you are obliged to report the redemption value in your insurance when reporting your SPT. Of course in the investment section.
If there is a claim, the beneficiary must report it
If your beneficiaries make a claim against the life insurance you purchased, the insurance company will disburse the insurance money to them.
After the beneficiary receives the insurance money, they must record it in their SPT as income that is not subject to tax.
Furthermore, they also need to update their financial information regarding cash and cash equivalent assets because the value of their assets will increase with the additional insurance money.
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