The Life Group Gratuity Product by Exide is one of the many Group insurance plans offered by the company. This Unit-linked plan offers financial protection so as to safeguard the monetary needs of the employees. The plan, which considers the employer as the policyholder and the employee as the members, will help organisations to offer a variety of benefits to employees in a very timely manner. The main aim of the Group Gratuity Product is to allow employers to build a corpus to help take care of their workers’ gratuity benefits and also to offer high returns if a member meets their demise.
Every organisation looking to buy the Exide Life Group Gratuity Product needs to meet a certain criterias. For instance, the company needs to have the right number of participants which should be the number as listed in the policy and should also meet the age restrictions. Here’s what the eligibility for this plan looks like:
|Minimum Group Size||10 members|
|Maximum Group Size||No limit|
|Minimum Entry Age||18 years|
|Maximum Entry Age||79 years|
|Minimum Maturity Age||19 years|
|Maximum Maturity Age||85 years|
All the organisations investing in the Exide Group Gratuity Product are required to make a minimum contribution towards an employee’s fund. The sum assured for the person will depend on this contribution. Below is the sum assured under this plan:
|Minimum Sum Assured per Member||Rs.1,000|
|Minimum Policy Term||One year|
|Maximum Policy Term||This plan can be renewed on a yearly basis till the master policyholder decides to terminate the policy|
|Minimum Balance in the Policy Account||Rs.1 lakh|
|Maximum Balance in the Policy Account||No limit|
|Premium Payment Terms||Monthly, Quarterly, Half-yearly, and Yearly|
There are a number of benefits offered by Exide Life Group Gratuity Product depending on a number of factors. For instance, the plan offers payout on death, retirement, and incapacitation of an employee and termination of the policy. Below is a table which lists out the benefits provided by Exide Life Group Gratuity Product?
|Retirement of the employee||If an employee, who is also a member of the plan, decides to retire, he/she will be paid the eligible benefits as per the policy rules. To make the payment, money left in the Group Gratuity Product Fund Value will be utilised.|
|Death of an employee||Upon death of a member, a sum assured of Rs.1,000 will be paid to the beneficiary.|
|Death while still in service||If a member passes away while still being employed by the organisation, the beneficiary will be paid the gratuity amount along with any other payable benefits as per the policy rules.|
|Surrender||If the policy is surrendered by the policyholder, a Surrender Charge will be deducted from the fund value before making the settlement.
Here’s what the Surrender Charges look like:
Below are some of the other features of the Life Group Gratuity Product by Exide:=
|Fund Management Charges||Currently stands at 0.8% per annum. Note that the insurance company holds the right to increase the charges at its discretion by providing a notice of 30 days after receiving an approval from the regulator. Also, the charge will be capped at 1.35%, which according to IRDA, is the maximum an insurer can charge at the moment.|
|Policy Administration Charges||There are no policy administration charges as such under this policy.|
|Switching Charges||There are no switching charges as such under this policy.|
|Mortality Charges||The Exide Life Group Gratuity Product will charge a flat mortality cover charge of Re.1 per Rs.1,000. This would be mentioned in the quotation provided to the policyholder. This charge will be deducted from the fund value at the prevailing market value at the time the deduction is made.|
|Free Look Period||If the policyholder does not agree with the terms and conditions offered to them by the insurance company, he/she can choose to terminate the policy within 15 days of buying the policy by providing a valid reason. However, upon cancellation, the premium paid will be returned after deducting the medical examination charges.|
Every organisation that has the Exide Life Group Gratuity Product is eligible for tax deductions based on Section 80C and Section 10 (10D) of the Indian Income Tax Act, 1961. However, the total deduction available will vary from time to time depending on any amendments brought to the aforementioned sections of the IT Act.
There are several reasons why the Exide Life Group Gratuity Product is a good fit for employers. They are:
There are a number of reasons why prospective customers should consider the Group Gratuity Product from Exide Life Insurance. These are as follows: