Tax deduction on Insurance

Reduce Your Tax Bill with Tax-Deductible Insurance in Thailand

Tax season can be stressful, but did you know you can lower your tax burden in Thailand by purchasing specific types of insurance? This guide explains how tax-deductible insurance works and helps you choose the right policy for your needs.

Why is Insurance Tax-Deductible in Thailand?

The Thai government incentivizes citizens to secure their financial future and healthcare by offering tax breaks on certain insurance premiums. This not only benefits individuals but also reduces the strain on public healthcare systems.

Types of Tax-Deductible Insurance in Thailand

  • General Life Insurance: Provides financial protection for beneficiaries after the policyholder’s death. Premiums are deductible up to 100,000 baht annually, with a minimum 10-year coverage period from a Thai life insurance company.
    • Whole Life: Offers lifetime coverage with premium payments ending after a set period.
    • Term Life: Provides coverage for a specific term at lower premiums. No payout if the policyholder survives the term.
    • Endowment: Combines life insurance with savings, offering a lump sum payout at maturity or upon death.
    • Unit-Linked: Blends life insurance with investment in mutual funds. Only life insurance premiums are tax-deductible.
  • Pension Life Insurance: Designed for retirement savings. Premiums are deductible up to 15% of your taxable income, capped at 200,000 baht annually. The policy must pay out benefits in installments starting at age 55 (minimum) from a Thai life insurance company.
  • Health Insurance:
    • Own Health Insurance: Covers medical expenses when you’re sick. Deductible premiums are capped at 25,000 baht annually.
    • Parents’ Health Insurance: Covers medical expenses for your parents or spouse’s parents. The maximum deduction is 15,000 baht per year, shared among siblings if applicable. Both parents must have an annual income below 30,000 baht and reside in Thailand (if you live outside Thailand for more than 180 days).

Maximizing Your Tax Deduction

  • Combine general life insurance premiums with health insurance premiums for a maximum deduction of 100,000 baht.
  • Pension life insurance premiums can be combined with other retirement savings options for a maximum deduction of 500,000 baht.
  • You can split parents’ health insurance premiums among siblings.

When to Buy Tax-Deductible Insurance

While many purchase insurance near year-end for tax purposes, planning ahead offers several advantages:

  • Better Financial Management: Avoid year-end financial strain from holidays and insurance purchases.
  • Informed Decision-Making: Gives you ample time to research and choose the most suitable insurance.
  • Policy Approval: Certain insurance types might require processing time, so early purchase ensures eligibility for tax deductions within the current year.


  • Carefully review insurance policy terms, exclusions, and conditions before buying.
  • Consult a tax advisor for personalized guidance on maximizing your tax benefits.

By understanding tax-deductible insurance options and planning effectively, you can significantly reduce your tax burden and secure your financial future in Thailand.


Tax deduction on Insurance
Scroll to top