HUF Insurance


HUF Insurance – Best Insurance for the best journey
HUF Insurance

Use your expertise to help secure a legacy.

The Hindu community has primarily believed in the concept of joint families, joint income, and joint property that is shared and enjoyed by all family members. This concept is a legal expression in the form of the Hindu Undivided Family (HUF)...

Under the tax laws, even Jain and Sikh families can set up HUFs. A HUF typically consists of people who have lineally descended from a common ancestor and will include their wives and unmarried daughters.

The Karta is the family head. The Karta makes decisions on economic and social matters on behalf of the entire family. While the senior members are called the Karta (manager), the male members are known as coparceners, and the females are referred to as members.

The HUF will not end even after the death of a Karta for up to four generations. If the Karta passes away, the oldest surviving male member acts as the new Karta.

A woman can become a Karta provided she is the daughter of a coparcener or Karta. However, the married daughter, wife, and daughter-in-law cannot be a Karta in their in-laws' family. This is because the Hindu Succession Act, 1956, overrides Hindu Law.

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  • The Karta of a HUF can propose an insurance cover on his own Life. As Karta, he can propose buying insurance on the Life of the coparceners. The coparceners cannot propose buying insurance where the Karta is 'life to be insured'.
  • The Hindu Succession (Amendment) Act, 2005 (39 of 2005) did away with the gender discriminatory provisions of the Hindu Succession Act, 1956, giving a daughter the same rights of a coparcener as a son. However, the daughter will only be a member of the HUF of the family she marries.

Benefits

  • The double benefit of 80c
  • 4 Generations can be covered
  • Grandfather's HUF will get the benefit of 80C on members' life insurance policy.

    To get insurance cover under the HUF scheme the following documentation is required: (Note: Documents 3 and 4 are required wherever financial guidelines are applicable as per the Matrix)

  • 1) Pan Card
  • 2) Declaration from the Karta of the HUF (As per the format given by Life insurance company)
  • 3) ITRs for the past three years of the HUF & balance sheet & P& L a/c for the past three years.
  • 4) ITRs of the life assured for the past three years (life assured can be Karta or any other member or coparcener of HUF)

  • PRODUCT OFFERED

  • Except for pension products, all products of Life can be offered.

  • MOST APPROPRIATE SEGMENT

  • Business owners People with higher salaries Multiple business owners