Section 72 Life Insurance Policy

A Section 72 Life Insurance Policy is designed to pay any Inheritance Tax Liabilities (also known as CAT Capital Acquisitions Tax) on your estate after you die. 

Inheritance tax (CAT) currently stands at 33% on anything inherited over the threshold allowed by revenue. The threshold depends on your relationship to the deceased. 

A Child or a Minor Child of a Deceased Child has an inheritance threshold of €335,000

A Sibling, Niece or Nephew or any Lineal Relation has an inheritance threshold of €32,500

Anyone else has an inheritance threshold of €16,250

Anything inherited above these thresholds will result in a 33% inheritance tax liability which must be paid by the person inheriting the estate (benefactor). If they can't afford it, then depending on how much time passes before they can afford it, they will be charged penalties and interest.

Section 72 Life Insurance is defined in Section 72 of the Capital Acquisitions Tax Consolidation Act 2003.


Section 72 works in a similar way to regular Life Insurance - you take out a policy, you pay your premium, and when you die, your benefactor gets a tax-free lump sum. The main difference is that it must be used to pay an inheritance tax liability. 

A Section 72 life insurance policy will pay part or all of your inheritance tax liability, depending on the sum you insure. Proceeds of a Section 72 life insurance policy are not aggregated with the rest of the deceased's estate. If there are surplus funds left after the inheritance tax liability is paid then any surplus will be subject to inheritance tax.

Who Can Pay a Section 72 Life Insurance Policy?

In some cases the benefactor may know that they will be inheriting a large estate. They may see the value in a Section 72 policy to reduce or eliminate any inheritance tax they would have to pay from their own funds. 

The person leaving the estate may not be interested in paying for a Section 72 policy, but that doesn't have to mean the benefactor can't pay for the premiums.

The benefactor can gift you up to €3000 tax-free using the small gift exemptionYou can then use this gift to pay the premiums on your policy.

Are there any Exclusions as to who can Apply for a Section 72 Policy?

Anyone can apply for a Section 72 Life Insurance Policy as long as they are aged 74 or under. 

Get in Touch to find out more!

Call the office on 0404 67123 to find out more, or click here to fill out our contact form and a member of staff will get in touch with you!

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Inverdea Financial Services Ltd.

Tel:  +353 (0)404 67123




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2 Bridge Street,

Wicklow Town,

Co. Wicklow, Ireland

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