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Long Time Life Insurance

What Is Long Time Life Insurance?

You can choose among the insurance period and premium options as you wish. Furthermore, you can also adjust the premium amounts according to your own budget by selecting the coverage amount as "fixed" or "decreasing".

Who Can Participate?

Any healthy person between 18-65 years of age can have this insurance.

For How Long Can I Have Coverage?

Long term life Insurance insures you from 2 to 10 years. Your age plus insurance period can be max. 70.

What Kind Of Coverage Can I Have With Long Time Life Insurance?

Death - Fixed Capital Provides coverage for risks which may be realized in case of any type of death occurring during policy’s lifetime. Coverage amount is fixed throughout the insurance period. Death - Decreasing Capital Provides coverage for risks which may be realized in case of any type of death occurring during policy’s lifetime. Coverage amount decreases regularly on annual basis throughout the insurance period.

How Do I Determine The Premium Amount?

Premium amount to be paid is calculated according to initial insurance age, insurance period, selection of fixed or decreasing coverage amounts and payment means. Your policy is issued in TRY.

How Do I Pay My Premıum Amount?

According to your choice, you can pay your premium amounts at once and in advance at insurance inception or in monthly, quarterly, 6-monthly or annual installments.

How Do I Receive TAx Advantage?

The premiums you pay for Long Term Life Insurance also provide relief in terms of tax issues. Pursuant to Articles 40/9, 63/3 & 89/1 of Income Tax Law No.193 and for your policies issued on or after 07.10.2001;

A - If you do not earn your income through payroll (wage income); 50% of the premium amounts you pay for life insurance policies with savings premiums for yourself, your spouse and little children; total premium amounts you pay for personal insurance policies such as death, accident, disability, unemployment can be deducted from your income tax base, provided that these shall not exceed 15% of the the income amount you declare and minimum wage annual amount. (Minimum wage annual amount is 60.048 ,00TRY for 2022)

Employer contribution shares paid to the pension system in the name of their employees and total amount of premium payments subject to tax reduction as specified in paragraph 1 of Item B below are also considered in determination of whether the requirement of not exceeding 15% of the the income amount you declare and minimum wage annual amount is met or not.

Premium amounts of spouses and children can be deducted from their own income if they submit separate statements, provided that the premium amounts are paid within the year when such income is earned and not deducted during the calculation of the net wage amount for persons earning wages.

B - If you earn your income through payroll (wage income); 50% of the premium amounts you pay for life insurance policies with savings premiums for yourself, your spouse and little children; total premium amounts you pay for personal insurance policies such as death, accident, disability, unemployment can be deducted from your income tax base, provided that these shall not exceed 15% of the the wage amount you received within the month when these premiums are paid and the minimum wage annual amount. (Minimum wage annual amount is 60.048 ,00TRY for 2022)

Employer contribution shares paid to the pension system in the name of their employees are also considered in determination of whether the requirement of not exceeding 15% of the the wage amount you received within the month when these premiums are paid and the minimum wage annual amount is met or not. Employers can deduct these contribution amounts from their commercial revenues as an expense, without associating them with employee wages.

In cases where both the employer pays contributions to the pension system and the employee pays premiums and the total amount of these two exceeds the aforementioned limit, parties shall be entitled to determine freely whether the deduction shall be made primarily in determination of the wage base or commercial revenue, to avoid any double deductions.

The term "spouse" used in the text above means persons currently legally married; "child/children" or "little children" means children not yet turned age 18 and living with or cared for by the taxpayer (including those receiving alimony, adopted children and also grandchildren with a deceased parent and living with the taxpayer) or children not yet turned age 25 and still attending school.

For instance, if your income is 2,000 TRY/month and the premium you pay is 100 TRY, you deduct this premium amount from your income tax base and pay the tax for the remainder amount. According to this, if 25% tax rate is applicable to you, the tax amount you pay decreases by 25% of the premium amount you pay. In other words, you actually pay 75 TRY only for a premium worth of 100 TRY.

You just need to submit the premium payment documents to your accountant or payroll department of your company.