Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) This section applies in relation to a person and a day (the assessment day ) if:
(a) the person has reached pension age; and
(b) the person is the owner (within the meaning of subsection 10(2) of the Life Insurance Act 1995 ) of a life policy covered by paragraph 9(1)(a) or (b) of that Act; and
(c) the person became the owner of the policy after the person reached pension age; and
(d) the sum of each amount paid for the policy (regardless of who paid the amount) in any period of 12 months exceeds 15% of the maximum death benefit that would be payable in the event of the death of the person whose life is insured on the assessment day.
(2) The value of the life policy on the assessment day is, for the purposes of the assets test, the higher of the following:
(a) the amount that would be payable to the person covered by paragraph (1)(b) if the policy were surrendered on that day;
(b) the sum of each amount paid for the policy by the person covered by paragraph (1)(b), less any commuted amounts.