Section EY 8 — Income Tax Act 2007: Meaning of life insurance

EY 8 Meaning of life insurance Meaning (1) Life insurance means insurance under which— (a) person A (the life insurer ) is liable to provide person B (the policyholder ) with a benefit described in subsection (2); and (b) the life insurer is entitled to receive consideration in return, either from the policyholder or from some other person. Benefits (2) The benefits are— (a) a benefit whose payment is contingent on the death of 1 or more human beings, including an annuity whose term is contingent on human life; or (b) a benefit whose payment is contingent on the survival of 1 or more human beings to a date, or an age, specified as part of the insurance, including an annuity whose term is contingent on human life; or (c) a benefit that is an annuity whose term is not contingent on human life, if the life insurer enters into the arrangement to provide the annuity as part of their business of providing life insurance. Exclusion: death benefits provided under accident or medical insurance (3) Life insurance does not include accident or medical insurance under which— (a) 1 or more benefits are payable for the death of the person whose life is insured; and (b) all the benefits referred to in paragraph (a) are— (i) payable if the death is caused by a specified cause named in the policy; or (ii) payable incidentally to the provision of accident or medical benefits, if the death is caused by a specified cause named in the policy. Exclusion: death benefits provided by superannuation funds (4) Life insurance does not include an arrangement in which— (a) a superannuation fund is liable to pay, as a benefit to a beneficiary of the fund, a lump sum on— (i) the death of 1 or more human beings specified in the trust deed; or (ii) the survival of 1 or more human beings specified in the trust deed to a date, or an age, specified in the trust deed; and (b) the lump sum is made up of— (i) superannuation contributions made by or for the beneficiary; and (ii) allocated investment earnings attributable to contributions made by or for the beneficiary; and (iii) any other allocation from the profits of the superannuation fund attributable to contributions made by or for the beneficiary. Defined in this Act: arrangement , business , life insurance , life insurer , pay , superannuation contribution , superannuation fund , Compare: 2004 No 35 s EY 8