PREMIUM CERTIFICATE

Premium certificate is the evidence of Life Assurance which is issued to the assured (You) solely for the purpose of rebate on income by the Inland Revenue Service. This is usually provided as evidence of payment of premium within one (1) calender year(JAN-DEC). 
 
Only premium certificate can be used and not a policy document, because policy document is the evidence of contract between the assured and the insurer. 
 
WHERE TO APPLY IT
Premium certificate is used solely for the purpose of tax rebate on income.
 
HOW DOES IT WORK?
It is written in PITAM that Life assurance premium are exempted from tax. This means that, premium paid on Life assurance policy would not be part of the income that is taxable. It then means that, amount paid as premium in a year(Jan- Dec) would be deducted from the total entitlement before the balance is being taxed.
 
This thereby reduce the amount payable as tax.
 
WHICH POLICY IS ELIGIBLE
Life assurance premium eligible for tax exemption are premium paid on PROTECTION POLICIES ONLY.

Protection policies are policies that provide life insurance cover. That is, policies that will pay Sum Assured on the occurrence of eventuality provided the policy is active.
In Mutual Life today, apart from Group Life, only the following can be used for the purpose of Tax rebate.

1. INDIVIDUAL SAVING AND PROTECTION PLAN (ISPP)
2. CHILDREN EDUCATIONAL PLAN (CEP)
3. MUTUAL MORTGAGE PROTECTION (MPP)
 Click the highlighted blue abbreviations you you need to know more on the plans
These products provides cover on death, provided the policy is active as at the time of death.
The application of any policy outside these could be termed as "Tax Fraud"
 
OPPORTUNITY;
If the policy you run at the moment is not listed above the listed 3, you cannot enjoy this rebate. The good news is this, you can change your policy to the first one or second on the list ( ISPP and CEP respectively). It is a 5 year plan though, you may wish to start up a new policy if you can afford it or you probably have a financial goal you wish to achieve in the nearest future. If you choose to change your existing policy, remember you are opened to 50% partial withdrawal only after two years on this plan, which the number of months you've done on your existing plan has been counted already. Also, you will enjoy full Life cover compare to the minimal cover you have on the existing plan you hold.
If you are running ISPP OR CEP please ignore this advise. The 3rd on the list (MPP) is a corporate plan.

You can reply this mail if you request further explanations to this and I would schedule a meeting time convenient for you to enlighten you more on this

Thanks for reading.
You deserve to know
Regards
Bayo Mutual
Your trusted account officer