Every year, the same question lands in my LINE inbox around February: "How much insurance should I buy for the tax deduction?" Here's the honest answer — buy what protects your family first, then optimize the deduction. Here's how the numbers actually work.
The two deduction buckets
Thailand gives you two separate buckets to work with:
- Standard life insurance — up to 100,000 THB of premium deductible per year, for policies with a term of 10 years or more.
- Pension (annuity) life insurance — an additional deduction of up to 200,000 THB, capped at 15% of your assessable income and sitting under the combined retirement-savings ceiling (which also includes Provident Fund, RMF, and SSF).
So in principle a higher earner can deduct up to 300,000 THB of insurance premium — but only if it fits the percentage and combined caps.
A simple way to think about it
- If you have no protection yet, start with cover sized to your family's real needs — typically enough to replace several years of income and clear major debts. The deduction is a bonus, not the goal.
- If you're already protected and want to lower tax, a pension life plan is often the most efficient next step because it opens the separate 200,000 THB bucket.
- Don't buy a 10-year endowment you can't sustain just to hit a deduction this year. Lapsing early usually costs more than the tax you saved.
What to do before tax season
- Estimate your assessable income for the year.
- Check how much of each bucket you've already used (existing policies, RMF/SSF, Provident Fund).
- Match the remaining headroom to a plan that genuinely serves your family.
Want me to run your specific numbers? Add me on LINE and send your rough income — I'll show you your deductible headroom in a few minutes, no obligation.
This article is general information, not tax or financial advice. Deduction rules and limits are set by the Revenue Department and can change.