CIRC to work on commercial endowment rules

The China Insurance Regulatory Commission said on Wednesday that it is working closely with the Ministry of Finance on regulations for individual tax-deferred commercial endowment insurance, in the run-up to a pilot program which is to take place before its wider introduction.

Endowment insurance is a form of life insurance, involving a payment plan, that pays the face value to the insured either at the end of the contract period or on the insured's demise.

Tax-deferred endowment insurance is where the insured pays for premiums before tax payments and pays their personal income tax only after the endowment benefits are collected.