Employees are essential to a company’s success, much more than clients or orders. Financial security of employees must be paramount, in addition to the benefits that are mandatory.
One of the best ways to take care of the financial needs of an employee is to provide them with an insurance plan. Star Union Dai-Ichi Life has come with with a Group Term Insurance Scheme in lieu of EDLI which is a term plan. This policy provides a life insurance cover to every employee who are a part of the Employees Provident Fund.
Benefits can be availed by both employees as well as employers. All premiums that are paid by the employers as part of the plan will be considered as a business expense for the purpose of Income Tax. Additionally, financial security can be availed by the families of the employees at nominal cost.
Employees can procure a higher cover as compared to the EDLI scheme without having to pay premiums towards the policy. Tax benefits can also be availed.
In order to avail the above policy, individuals will have to fulfill the eligibility criteria mentioned below.
|Minimum Age of Entry (in years)||18|
All ages are based on last birthday of the individual.
Sum Assured and Premium Range - What you get and what it costs?
This amount is based on the premium being paid, policy tenure and other factors.
Premium amount varies based on a number of factors.
|Mode of Premium Payment||Annual/Semi-Annual/Quarterly/Monthly|
Premiums may vary depending upon factors like age, location, term of the plan and prevailing taxes/GST.
|Death Benefit||In case of untimely death of policyholder, the Sum Assured amount will be paid to the nominee and can be facilitated via the employer for transmission.|
|Maturity Benefit||There is no maturity benefit as part of this plan.|
|Surrender Benefit||There is no surrender benefit as part of this plan.|
|Lapse||There is no lapse benefit as part of this plan.|
Other Key Features – Freelook Period, Surrender Values, Grace Period etc.
|Grace Period||Grace period for premium payment under this plan is 30 days if the mode of payment is annual, semi-annual or quarterly. However, if monthly mode of payment is selected, the grace period is 15 days.|
|Nomination||Nomination is mandatory under this plan and the Sum Assured will be paid to the nominee in case of untimely demise of member.|
Tax benefits can be availed by the employer as all premiums that are paid under this policy will be considered as a business expense for the purpose of Income Tax. Additionally, members can also avail tax benefits wherein the claim amount paid in case of their untimely demise, will be exempt from income tax.
Customers should note that all tax benefits will be subject to variations from time to time. Hence, they are advised to talk to their tax consults prior to availing this plan.
Other benefits - How you can save with the Star Union Dai-Ichi Life Group Term Insurance Scheme in lieu of EDLI Plan
In addition to the benefits mentioned above, customers can avail a number of other advantages, as mentioned below.
Employees are a company’s biggest asset. By ensuring their well-being and financial security over and above the compulsory advantages, customers can retain their employees for a longer period of time and increase their efficiency as well.
One of the well-known insurance providers in the country, Star Union Dai-Ichi Life is present in more than 1,000 branches across the country. Easy to understand as well as procure, these affordable insurance policies are some of the reasons why a large number of individuals procure policies from this company. This company also sponsors numerous regional rural banks.
This company is a joint venture between Union Bank of India, Bank of India as well as Dai-Ichi Life and boasts of a high claim-settlement ratio as well.
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