The National Taxation Bureau of the Central Area, Ministry of Finance of the Republic of China (Taiwan) has expressed that according to Article 16, Paragraph 9 of Estate and Gift Tax Act, proceeds paid to the designated beneficiary at the time of death of the ancestor under life insurance is excluded from the gross estate. This is however only applicable when the ancestor is the proposer as well as the insured. If the ancestor is only the proposer, but the insured is not the same person, because the proposer is obligated to pay the insurance premium, when the proposer dies, the policy value should have the right of property value, which as a result should be included in the estate tax of the proposer according to Articles 1 and 4 of Estate and Gift Tax Act.