VEA [2]
Life insurance products can be categorised into three groups:
All life insurance products have features in common:
If there is more than one life insured, the policy matures on death of all of the lives insured. If the life insured is also the policy owner, the payment following death is usually paid to the policy owner's estate.
If income is assessed for an insurance policy, it is usually assessed in relation to the policy owner.
The policy owner, or policy holder, who usually pays the premiums:
Unbundled life insurance policies and insurance bonds are managed investments. All managed investments are financial investments [8] which are assessed using the deeming provisions [9].
More [10]
VEA [11]
Conventional life insurance policies are not financial investments [8]. Bonuses accumulate on conventional life insurance policies during the term of the policy. On withdrawal, surrender or maturity of the policy, the difference between the total amount received on withdrawal, surrender or maturity and the sum of the purchase price and premiums paid by the investor is assessed as income for 12 months.
More [12]
Links
[1] https://clik.dva.gov.au/user/login?destination=node/16447%23comment-form
[2] https://clik.dva.gov.au/book/export/html/16447#tgt-cspol_part10_ftn187
[3] https://clik.dva.gov.au/service-eligibility-assistant-updates/all-determinations-order-date-signed-oldest-most-recent/determinations-under-vea
[4] https://clik.dva.gov.au/legislation-library
[5] https://clik.dva.gov.au/book/export/html/16447#ref-cspol_part10_ftn187
[6] clikpopup://DEF/Partner
[7] https://clik.dva.gov.au/book/export/html/16447#tgt-cspol_part10_ftn188
[8] clikpopup://DEF/Financial investment
[9] clikpopup://DEF/Deeming Provisions
[10] https://clik.dva.gov.au/book/export/html/16447#tgt-cspol_part10_ftn189
[11] https://clik.dva.gov.au/book/export/html/16447#tgt-cspol_part10_ftn190
[12] https://clik.dva.gov.au/book/export/html/16447#tgt-cspol_part10_ftn191
[13] https://clik.dva.gov.au/compensation-and-support-policy-library/part-10-types-income-and-assets/102-assets
[14] https://clik.dva.gov.au/book/export/html/16447#ref-cspol_part10_ftn188
[15] https://clik.dva.gov.au/compensation-and-support-policy-library/part-9-principles-determining-pension-rate/95-deeming-provisions/956-deeming-managed-investments/deemed-income-life-insurance-products-regarded-managed-investments
[16] https://clik.dva.gov.au/book/export/html/16447#ref-cspol_part10_ftn189
[17] https://clik.dva.gov.au/book/export/html/16447#ref-cspol_part10_ftn190
[18] https://clik.dva.gov.au/compensation-and-support-policy-library/part-9-principles-determining-pension-rate/95-deeming-provisions/956-deeming-managed-investments/income-life-insurance-products-conventional-policies
[19] https://clik.dva.gov.au/book/export/html/16447#ref-cspol_part10_ftn191