The Group Traditional Employee Benefit Plan from Exide Life is a non-linked, non-participating variable insurance policy that builds a retirement corpus via guaranteed returns. Under this plan, the trustee/employee is regarded as the policyholder and the employees are considered as the members. The aim of the plan is to ensure that employee benefits such as gratuity and leave encashment are managed for the employees. The Exide Life Group Traditional Employee Benefit Plan also aids in creating a substantial fund in an effort to ensure that liabilities are discharged in a hassle-free manner by responsible employers.
The Exide Life Group Traditional Employee Benefit Plan has a Minimum Floor Rate through which an interest rate of 1.5% per annum is the minimum guaranteed rate you will receive for the whole tenure of the policy. The plan also has an Additional Interest Rate through which Exide Life will declare a non-zero-positive extra interest rate at the start of each quarter which remains unchanged for that particular quarter.
The Exide Life Group Traditional Employee Benefit Plan also offers tax benefits for employers as well as employees based on the prevailing tax laws. Moreover, Exide Life shall also assist trustees/employers in managing gratuity liabilities, thereby making the Group Traditional Employee Benefit Plan a good option for employer-employee groups.
To purchase the Exide Life Group Traditional Employee Benefit Plan, employer employee groups must have a certain number of members and each member is required to adhere to the age restrictions. Following are the eligibility criteria that must be satisfied to purchase the Exide Life Group Traditional Employee Benefit Plan:
|Type of Group||Employer Employee Groups|
|Minimum Group Size||10 members|
|Maximum Group Size||No limit|
|Minimum Entry Age||18 years|
|Maximum Entry Age||84 years|
|Maximum Maturity Age||85 years|
Employer Employee groups that enrol for the Exide Life Group Traditional Employee Benefit Plan will have to insure each member for an amount of money which is called the sum assured, and contributions must be made at regular intervals of time to keep the policy in force. Following are some of the important details you need to know about the Exide Life Group Traditional Employee Benefit Plan:
|Minimum Sum Assured per Member||Rs.1,000|
|Minimum Policy Term||One year (Annually renewable)|
|Maximum Policy Term||The Exide Life Group Traditional Employee Benefit Plan will be renewed on the policy anniversary date each year and will continue to remain active unless Exide Life or the master policyholder specifically terminate the plan.|
|Minimum Balance in the Policy Account||Rs.1 lakh|
|Maximum Balance in the Policy Account||No limit|
|Mode of Contribution||Monthly, Quarterly, Semi-Annual, Annual|
The Exide Life Group Traditional Employee Benefit Plan provides benefits in the event of the death of a member, or the retirement / resignation / disability / exit owing to other reasons as specified in the policy regulations. Following are some of the key features of the Exide Life Group Traditional Employee Benefit Plan:
|Events||Amount of Benefits|
|Death of a member||In case of the death of a member during the policy term, the beneficiary will be eligible for the accrued benefit according to the policy rules in addition to the Sum Assured of Rs.1,000.|
|Retirement / Resignation / Disability / Exit owing to other reasons||In case a member of the group decides to exit the group, resign or retire, or is declared disabled and cannot work as a result, he/she will receive the accrued benefit according to the policy rules of the employer.|
|Winding up of scheme / Full Surrender||In case of policies that have been selected for extra funding, the payout shall be the policy account value minus unrecovered charges for extra funding minus surrender charge of 0.05% of the policy account value minus MVA. The maximum amount of money that can be granted as surrender charge is Rs.5 lakhs. In case of policies that are not selected for extra funding, the surrender charge shall be policy account value minus surrender charge of 0.05% of policy account value minus MVA. The surrender charge cannot exceed Rs.5 lakhs.|
|Policy Account and Interest Additions||Exide Life Insurance shall maintain a pooled fund at Master Policy level for each scheme which will be referred to as the Policy Account. The value of this account shall be computed by crediting all contributions along with the interest credited minus all withdrawals and applicable charges based on the rules of the policy. The benefits on different events such as the resignation, termination, death or disability shall be paid from the respective Policy Account based on the policy rules after consultation with the master policyholder. The Policy Account shall be credited with interest rates at the end of every policy year. There is a Minimum Floor Rate through which an interest rate of 1.5% per annum is the minimum guaranteed rate you will receive for the whole tenure of the policy. Apart from the Minimum Floor Rate, Exide Life Insurance will also declare an Additional Interest Rate through which is a non-zero-positive extra interest rate at the start of each quarter without changing for that particular quarter. The Additional Interest Rate will be credited to the account every quarter, and is computed as 70% of the gross yields to be earned on the backing assets minus the Minimum Floor Rate. The plan also has a Non-negative Residual Addition apart from the aforementioned two rates, which if applicable will be credited to the policy account starting from the completion of the first policy year.|
|Contributions||The employer will have to pay Exide Life Insurance a contribution for each member. The contribution can be paid on an annual, semi-annual, quarterly or monthly instalments.|
Following are some of the other key features you must know about the Exide Life Group Traditional Benefit Plan:
|Mortality Charges||The Exide Life Group Traditional Benefit Plan has a mortality cover of Rs.1,000 per member, and the charge for the mortality cover shall be Re.1 for the life covered provided in the plan.|
|Bulk Exits||In case the overall amount of exit owing to one of the aforementioned reasons in a single policy year is more than 25% of the balance in the account, the exit will be known as a bulk exit. The Market Value Adjustment will be applied only to the amount in excess of the amount representing bulk exit. If there are any Market Value Adjustment losses, they will be adjusted from the policy account.|
|Market Value Adjustment||Market Value Adjustment is a factor through which market value losses of the underlying investment are covered. The losses covered will be in relation to the balance in the policy account. Market Value Adjustment is calculated using the following formula: Market Value Adjustment Amount = [Maximum (0, Policy Account Value – Market Value) / Policy Account Value] x (Net amount in excess of the amount representing bulk exit).|
|Free Look Period||Customers who purchase the Exide Life Group Traditional Benefit Plan can return the policy within 15 days if they are not satisfied with the terms and conditions of the same. In case the policy is purchased through Distance Marketing mode, the free look period will be extended to 30 days.|
|Nomination||Nomination can be made and has to comply with the provisions of Section 39 of the Insurance Act, 1938.|
Customers who purchase the Exide Life Group Traditional Benefit Plan are eligible for tax deductions under Section 80C and Section 10(10D) of the Income Tax Act, 1961. Please note that tax laws are subject to amendments from time to time, which means that your benefits will also be revised when the changes take place.
The Group Traditional Benefit Plan from Exide Life Insurance Company Limited is a great option for employer employee groups who wish to manage their gratuity and leave encashment and whilst ensuring the smooth discharge of liabilities. The company itself is one of the most renowned insurance providers in the country and has several years of experience in the domain. Not only is Exide Life profitable and popular, it also has a customer base ranging to 15 lakh individuals. Headquartered in Bengaluru, the company has assets worth in excess of Rs.9,500 crores. In FY 2015-16 alone, the company recorded total premium income of more than Rs.2,000 crores.
Exide Life Insurance Company Limited distributes its products via several different channels including broking, bancassurance, corporate and other agencies, and with 50,000 quality advisors on its payroll, customers can be sure of not only finding the insurance plan that best suits their requirements, but also resting assured that any concerns they have will be promptly solved by the 24/7 customer care team.
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