Tax Advantage at Premium Payment Term 

For wage earners:

For the policies that have started before 07.10.2001, of the premiums paid by the working people for themselves, their spouses and dependents, which are equal to the share paid by  them to the social securities institution, are subtracted from his/her income tax base in each month when the premium is paid.   

For the policies that have started after 07.10.2001, of the premiums paid by the working people for themselves, their spouses and dependents are subtracted from his/her income tax base, provided that the paid premiums monthly do not exceed 5 per cent of the  gross wage  and also does not exceed one-year-sum of the minimum wage.

For income tax payers subject to tax declaration;

For the policies that have started before 07.10.2001, income tax payers subject to tax declaration may subtract the individual insurance premiums they are paying for themselves, their spouses and dependents from the income they declare, provided that these premiums shall not exceed 5 % of the income they declare and these premiums shall not surpass the annual amount of minimum gross wage, for every single person. 

For the policies that have started after 07.10.2001, income tax payers subject to tax declaration may subtract the individual insurance premiums they are paying for themselves, their spouses and dependents from the income they declare, provided that these premiums shall not exceed 5 % of the income they declare and these premiums shall not surpass the annual amount of gross minimum wage.

Tax Practices at the End of the Insurance Term 

For the policies that have started before 07.10.2001, if the sum of money/wage to be received exceeds the maximum wage or sum of money paid to a government employee, the exceeding part is taxed by being declared with an income tax declaration.
For the policies that have started after 07.10.2001, 10 % of the cumulative amount is excepted and     10 % of withholding tax out of the remaining amount is applied.

Tax Practices for the Leavings Before the End of the Insurance Term (Purchase) 

For the policies that have started before 07.10.2001, if the sum of money/wage to be received exceeds the maximum wage or sum of money paid to a government employee, the exceeding part is taxed by being declared with an income tax declaration.
For the policies that have started after 07.10.2001, 15 % of withholding tax is applied to the cumulative sum.