SUD Life Group Leave Encashment Scheme from Star Union Dai-ichi Life Insurance Co. Ltd. is designed for groups who involve in common economic activity. Groups such as offices, associations, organization, etc. can use this scheme to reduce their financial liability. The situations where employees leave the organization or moves internally, the organization is required to encash the leave balance in order to release them from their duty. This scheme allows the organization to invest in a group scheme that offers life cover along with the benefit of leave encashment options. With the coverage of this scheme, the leave encashment is paid by the insurer from the policy fund.
In order to buy this scheme, Star Union Dai-ichi Life Insurance Co. Ltd. has outlined the following eligibility criteria:
|Minimum age at entry||18 years|
|Maximum age at entry||69 years|
|Maximum age at maturity||70 years|
|Minimum sum assured||Rs.1,000|
|Maximum sum assured||As per scheme rules|
|Scheme term||1 year (renewable)|
|Life cover premium||
|Maximum premium||As per scheme rules (no limit)|
|Premium payment term||
The age is based on the last birthday of the applicant.
|Death benefit||In the event of member's unfortunate death, the accrued leave encashment amount will be payable to the nominee.|
|Retirement benefit||If the member attains retirement, he/she will be entitled to the accrued leave encashment amount. If the member's employment is subject to premature retirement, resignation, or termination, the accrued leave encashment amount will be payable to the member.|
|Nomination||The policyholder can change the details of the nominee or the nominee itself during any time during the policy term. In order to change the nominee details, the policyholder/member is required to get in touch with Star Union Dai-ichi Life Insurance Co. Ltd.|
The SUD Life Group Leave Encashment Scheme allows the attachment of rider to enhance the scheme benefits. The policyholders can opt for 'SUD Life Accidental Death and Dismemberment Benefit Rider' to claim for loss of income resulting from an injury that was caused by an accident. Additionally, the base scheme along with the attachment of the rider will provide the dual benefit of basic sum assured and rider sum assured, when applicable.
Suicide – In the event of a member's unfortunate death due to suicide, whether sane or insane, within one year from the risk commencement date, the premiums paid in for that member will be forfeited, and no claim will be paid to the nominee/beneficiary of that member. This exclusion is applicable only for the life cover and rider cover. The accrued leave encashment amount will be payable as per scheme rules.
Other Key Features – Free-look Period, Surrender Values, Grace Period etc.
|Surrender values||The scheme acquires surrender value after the completion of the first policy year. In order to surrender this scheme, the policyholder is required to bear the surrender charges. If the scheme is surrendered on the 2nd policy year, 3% of the accumulated fund is required to be paid as the surrender charge. Surrendering the scheme in the 3rd and 4th year attracts 2% and 1% surrender charges respectively. If the scheme is surrendered in the 5th policy year, the policyholder is not required to pay any surrender charges.|
|Grace period||The scheme offers a grace period of 30 days for payment of due premiums. If the policyholder fails to pay the due premiums within the grace period, the scheme will lapse and the cover will cease to exist.|
|Revival of the policy||Once the policy has lapsed, the policyholder can revive the cover by paying all the due premium within 2 years from the date of the first unpaid premium.|
|Nominee||During the policy term, only the master policyholder can get it touch with Star Union Dai-ichi Life Insurance Co. Ltd. to amend the details of the nominee pertaining to any member's cover.|
The scheme allows the employers or the master policyholder of a group to declare the contributions as business expenses that are essential for tax savings. The tax benefits are based on the latest tax rules and regulations that are subject to change. Customers are advised to consult a qualified tax advisor before making a purchase decision.
The SUD Life Group Leave Encashment Scheme helps various types of groups to reduce their financial liability by saving for a dedicated fund that is used for leave encashment. In addition to the life cover, leave encashment, and other benefits, the scheme offers the following types of advantage that include but are not limited to:
The groups who have 50 or more members can take advantage of this cost-effective scheme to manage their leave encashment administration effectively. Additionally, the SUD Life Group Leave Encashment Scheme offers enhanced coverage through the add-on/rider option. Star Union Dai-ichi Life company is one of the largest life insurance companies who offer an extensive range of insurance products for different stages of life. The insurer offers excellent customer services through their team of knowledgeable and qualified advisors. The insurer can be contacted by various communication methods for more information on the products.
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