Which of the following policies qualifies the holder to income to income tax relief?
Answer Details
Endowment assurance is the policy that qualifies the holder to income tax relief. Endowment assurance is a life insurance policy that pays a lump sum amount to the policyholder at the end of a specific period or upon the death of the policyholder. The premiums paid for the policy are tax-deductible, which means the policyholder can claim a deduction on the income tax payable on their income. Therefore, the policyholder is eligible for income tax relief when they hold an endowment assurance policy. The other options, such as accident insurance, public liability insurance, comprehensive insurance, and fidelity guarantee insurance, do not qualify the holder for income tax relief.