Life insurance policy receipts taxation turns on premium limits, policy type, and death benefit exemptions under the income rules. Any sum received, including bonus, under a life insurance policy is taxable unless it qualifies for exclusion under the relevant exemption provisions and satisfies the prescribed conditions. The taxable amount is computed by reducing the receipts by the aggregate premium paid during the policy term that has not been claimed as deduction elsewhere, with separate formulas for the first year of receipt and subsequent years. The exemption framework applies different premium-to-sum-assured ratios and aggregate premium limits depending on the policy issue date, excludes keyman and unit linked insurance policies, and preserves exemption for sums received on death and for term life policies that pay only on death.