Life Insurance

Life Insurance

LIFE

INSURANCE-
INDIVIDUAL

Mangla Consulting

What is Life Insurance?

An amount which the nominee or the family will receive after the demise of the insured. Life insurance is simply a tool which will provide money to your near and dear ones after you, which will help them in different ways like paying EMIs, payment of school bills, payment of other household expenses etc. For that you need to pay risk charges to the life insurance company.

Need of Life Insurance

Life Insurance is required to provide financial security to the family. So that the family should be financially independent after the demise of the bread winner of the family.

Things to consider before buying a Life Insurance Policy

  • Credibility of the company, services offered and claim track record.
  • Credibility of your investment consultant.
  • Does the policy offered to you suit all your needs?
  • Go through the terms and conditions of the policy (either through company’s own website or company’s broacher).
  • Past track record of the product.

All the above one should check very carefully as it might be the case that your family have to claim the amount from the company.

Providing information to the company while
filing up the Application Form

One should provide all the correct information to the insurance company like your Personal details, Medical details, Family history, Existing insurance, Nominee details etc. as all these details helps the insurance company to rate the risk for you on the basis of which company issues the policy.

Types of Insurance

There are few different types of plans available to invest in life insurance.

Unit Linked Insurance Plans (ULIP)

A Unit Linked Insurance Plan (ULIP) is a market-linked product which is a combination of investment and insurance. It is a plan which is linked to the capital market and offers various options to invest in equity or debt or with various combination of both (Equity & Debt funds) as per risk appetite.

Term Assurance Plan

A pure risk coverage policy which has no maturity value, in case of death nominee will get full sum assured of the policy. The premium in this policy is very low but the risk coverage is very high.

Endowment Plan

A traditional life insurance plan which comes with a specified coverage for the insured on a specific premium where at the time of maturity insured will get full sum assured plus bonuses and in case of death nominee’ll get full sum assured plus accrued bonuses

Money Back Plan

A saving plus risk coverage plan where insured will get sum money in specified intervals of the term of the policy, balance amount will be payable at the maturity with accrued bonuses. In case of death of the insured the nominee will get full sum assured alongwith the accrued bonuses.

Retirement Plan

Saving plans for the retirement which will generate income after one retire from work.

Employer Employee Scheme

Employers have an insurable interest in the lives of his employees. In view of this employer can take a life insurance cover for employees where the premiums are paid by the employer.
An employer employee relationship would be established where the employee earns a salary from the employer. The insurance policies can be taken for all employees or for a class of employees. The employer may or may not be the Proposer under the policy.

Need of Employer - Employee Insurance

  • As a reward for good service to a select band of employees.
  • As an encouragement for continuation in the service
  • As a welfare measure and provision for his old age/ dependents.

Group Term life Insurance

Group term life is normally a one-year renewable term insurance, which may be extended to cover the insured’s spouse and eligible children. The widespread use of group term life is thanks to its ability to provide employers with low-cost death benefits for the protection of the employees and their dependents.

Group Gratuity Schemes

Most employers have a statutory obligation to pay a gratuity to its employees on termination of employment. This gratuity is in the form of a one-off payment made on termination of employment. It depends on salary and number of years of service, so will therefore increase with time. The plan helps the company by building a fund systematically, which will be used to meet your future gratuity liability & providing the opportunity to maximize investment returns and thus provide the benefit in a cost-effective manner.

LIFE

INSURANCE-
COrporate

Mangla Consulting

Group Superannuation Schemes

Many organizations realize that the statutory requirement benefits are not sufficient for their trusted employees to continue enjoying their quality of life after they retire. The Superannuation scheme is a great way for an employer to show his employees that he not only takes care of them while in service, but has also ensured that they can lead a comfortable life after retirement.

Group Superannuation Schemes is a great employee retention and motivation tool that helps employers to fund their employees’ post-retirement needs in a systematic, tax-efficient and cost-effective manner. Moreover, it gives you tremendous flexibility and freedom to customize individual retirement funds for your employees based on their appetite for risk and the stage of life they are in.

Leave Encashment Schemes

Many employers provide their employees with the option of encasing their leave to their credit at the time of retirement or resignation. Accounting Standard 15 requires that an actuarial valuation of a company leave encashment liability be carried out and reflected in the books of accounts. This can help company in creating a fund that can be built up to meet your future leave encashment liability & providing the opportunity to maximize investment returns and thus provide the benefit in a cost-effective manner.

Annuity Solutions

Your loyal employees have untiringly dedicated several years of their lives to you and your company’s success. You would undoubtedly want them to live contently when they retire from your service.

Group Term in lieu of EDLI Scheme

As an employer eligible under the Employee’s Provident Fund and Miscellaneous Provision Act, 1952, you have a statutory liability to subscribe to Employee’s Deposit Linked Insurance Scheme, 1976, to provide all your employees with the benefit of Life insurance.

Under Sec. 17 (2A) of the Act, you may be exempted from subscribing to this scheme, if you have provided for better insurance benefits than the cover offered by Employee Provident Fund Organization (EPFO) through a life insurer.