Employer Employee Insurance


Employer Employee Insurance – Best Insurance for the best journey
Employer Employee Insurance

Help secure a business and the people who shape it.

Employers buy Employer Employee Insurance to provide additional benefits to their employees while also aiming to retain employees. Employer-Employee Insurance policies can be purchased based on certain conditions such as minimum years of service, completion of projects, or creation of retirement corpus.

It is common for most companies to provide their employees with insurance. Therefore, the premium paid by the organisation is treated as an expense under section 37(1).

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  • The employer proposes the policy and pays premiums on the conditions agreed upon by both - employer and employee.
  • The employee is 'life to be insured' in the policy.
  • The employer pays the Insurance premium.
  • Suppose the employee quits within the specified period. In that case, the employer can either surrender the policy to the insurance company or assign the policy to the employee as a part of the terminal benefit.
  • However, if the employee dies during the specified period, the benefits of the policy are passed to the nominees of the employee.

Benefits for the employee

  • Life Cover for the Employee - Financial Security
  • Wealth Accumulation - Future Financial Planning
  • Build a corpus for retirement - at the company's expense
  • Legacy Creation
  • Estate Planning - Essential for 1st generation business people to avoid conflict

Benefits for the employer

  • Employee retention tool
  • Helps you defer your taxes

PRODUCT OFFERED

  • Any plan of Life except pension plans

MOST APPROPRIATE SEGMENT

  • SME with a turnover between 1-500 crore
  • The premium paid is an allowable Business Expense under section 37 (1) of the Income Tax Act 1961.
  • If the employer surrenders the policy, the surrender value received will be treated as Business Income under section 28 (VI) of the Income Tax Act 1961.
  • Board resolution Insurance company on the employer's letterhead
  • Standard declaration form from Insurance company.
  • Assignment form
  • Profit & loss account, balance sheet, ITR copy for the last three years of the company
  • Memorandum of Association and Article of Association
  • KYC form of the company (PAN card copy, I.D. proof, photograph of the directors and address proof)
  • DOB proof of the employee
  • KYC of the employee (PAN card copy, I.D. proof, photo of the employee and address proof)
  • Form16/ ITR of the employee for the last three years
  • Proposal form and cheque