Tax risks of investment-type insurance policies
The tax risk of investment-type policies depends on the "gains" (withdrawal amount - premiums paid), not whether it exceeds the principal. If there is no profit, there is no tax exemption; if there is a profit, the tax burden is determined by the annual income and the tax exemption amount. The withdrawal amount is tax-free if it is less than 92,000 (2024 standard), but it will be included in the comprehensive income tax declaration (tax rate 5%~40%) if it exceeds. There is no need to worry if the investment is below 1 million. For investments above 2 million, it is recommended to withdraw the funds in installments and make reasonable plans to save taxes. Those who invest more than 5 million should plan their taxes in advance to avoid high tax burdens.
