The Group Superannuation Plan from IndiaFirst insurance company is designed to provide members a secure retired life. A non-linked participating group scheme, it provides a corpus which can be used by members when they retire. For employers this is an excellent way to gain employee trust and confidence, in addition to creating a better work environment. Assured returns ensure that inflation does not dilute the value of an investment.
Groups looking to enjoy the benefits of this scheme should keep these basic criteria in mind.
|Parameters||Criteria for eligibility|
|Minimum age at entry||18 years|
|Maximum age at entry||70 years|
|Maximum age at maturity||On retirement|
|Minimum group size||10 members|
Sum Assured – The plan provides assured returns to the tune of 0.5% each year. The investment is pooled together, with it possible for the master policyholder to withdraw money from this pool to pay a member under the scheme.
Premium range – The master policyholder pays the premium under this plan. While he/she could take contributions from employees, there is a certain minimum amount which should be paid each year. The current minimum requirement stands at Rs.50,000, with there being no upper limit on how much can be invested.
|Minimum yearly contribution||Rs.50,000|
|Maximum yearly contribution||No upper limit|
*The premium varies based on the age of policyholder, sum assured, location, etc. With the implementation of GST the price of purchasing a policy has increased. Please check all rates at the time of purchase.
|On death||In case a member passes away, the master policyholder may choose to pay a lumpsum to the beneficiary/nominee. Alternately, the master policyholder can choose to invest this amount in the IndiaFirst Group Term Plan to secure the future of the deceased’s family.|
|On retirement||The master policyholder will pay the member a lump sum amount.|
|On termination/separation||A certain amount will be paid to the member.|
Note: The amount payable depends on the scheme rules which are determined at the time of inception of policy. The master policyholder can choose from four funding options, based on the requirements of the members.
There are no exclusions under this policy. Unlike other plans, there is no suicide exclusion, with the benefit payable to the master policyholder/nominee even in this case.
Other Key Features
|Loan||No loan facility provided|
|Discontinuation of policy||A master policyholder can choose to terminate/discontinue the policy|
|Surrender value||Computed as per market value reduction|
|Assured return||0.5% per year|
Both the master policyholder and members are eligible for tax benefits when they purchase this plan, depending on who pays the premium. In case the master policyholder pays the full amount, he/she can claim benefits under Section 36(1)(iv) of the Income Tax Act. The amount paid is viewed as a business expense in this event.
Similarly, any amount which a trustee/master policyholder receives in the form of superannuation is free from tax according to Section 10(25)(iii) of the act. Additionally, if the yearly contribution is below Rs.1 lakh per member, the employer need not pay any Fringe Benefit Tax.
Alternately, if a member makes a contribution to the fund then he/she can claim a deduction under Section 80C of the IT Act. Any amount paid by the master policyholder on the death of a member is free from tax as per Section 10(13) of the act.
IndiaFirst might be a late entrant in the Indian life insurance sector, but it has managed to create a niche for itself since its inception in 2010. The insurer is ISO 9001:2008 certified, highlighting quality services and products.
The company uses modern technology to simplify all aspects related to insurance, with a dedicated team handling all queries. With a grievances solved ratio of 98.33% during 2015-16, the company established itself as an organisation which puts customers first.
The Group Superannuation Plan offers a host of benefits to members, ensuring that groups can concentrate on work without having to worry about the future.