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Group Insurance Schemes

Group Insurance Schemes

Group Insurance Scheme is life insurance protection to groups of people. This scheme is ideal for employers, associations, societies etc. and allows you to enjoy group benefits at really low costs.

Why Group Insurance?
This concept helps the firm reduce attrition and promotes employee satisfaction. It is definitely a motivating factor for an employee when his/her employer takes insurable interest in the life of an employee. Employee gets the benefits of the insurance cover without paying for the same. The maturity or death benefits are tax free and belong to the employee. The structure can be used to purchase any kind of insurance. It is most common to use for life insurance purchases. 

What is Group Insurance?
The employer-employee structure is one where the company buys insurance but the beneficiary is an employee. It is a benefit given by the company to select employees. In today's context this is particularly relevant because attracting and retaining employees is so much more difficult. The employer-employee insurance policy works as a reward program for the employees 

The insurance is also relevant for promoter run companies where the promoter would like his or her insurance expenses paid for by the company. A common tendency is to confuse employer-employee insurance with keyman. The two are very different. While keyman can only be term life cover, employer-employee structures can be used for any kind of insurances. In keyman the insurance benefit on death is paid to the company and is subject to income tax. However, in employer-employee the benefit is paid tax free 

Who can be covered under Group Insurance scheme?
A sole proprietor or a corporate or any other legal firm with minimum 7 employees can buy this policy. One single cheque has to be drawn by the employer for all the employees he wants to cover. 

Indian employees who are on payroll of the company fit to the criteria of employer-employee insurance policy. NRI employees can also apply for the policy provided employer has a registered office in India.

How can buy this Group Insurance and avail of the tax benefits?
No need to worried how can you (as an employer) buy this plan for your employees. Just leave here some essential details, A certified financial Planner of “GRASP Investments” will visit to your given address and clarify your all doubts, Please note the meeting will be totally a non-obligatory meeting.


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