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7/30/2019 Lim Prsntn

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GROUP SAVING LINKED INSURANCE

SCHEME Insurance protection + saving.

Product sold depending upon the status of theemployee in the company.

Saving contribution returned within interest at thetime of retirement.

In case of death during service, the amount for whichthe member was covered at the time of death &

accumulated saving will be paid


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Group superannuation Contribution made by company towards pension

benefit of an employee

- Attainment of certain age- Retirement

- Cessation of service

- Event of death


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Using a trust fund

Entering a group supperannuation scheme

arrangement with insurance company Tax exempt upto 15%


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Group Gratuity Scheme Gratuity is a payment that the company makes to

the employee at the end of the service. It consist of

the addition to the provident fund and otherretirement benefits.

This scheme is available to an employee on

Retirement

Cessation of service

Event of death


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It is compulsory for a company which is coveredunder the payment of gratuity act ,1972 to paygratuity for every half month salary for everycompleted year of service.

An employer may pay gratuity through

Out of internal reserves

Out of a trust set up for administering the funds

Tax exemption is allowed in these funds


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Administered by trust

Employer contributes

Gratuity payment does not come under the preview ofinsurance business.

It is linked with gratuity.And this is known as Gratuity cum Life assurance

Scheme

Imp. Employee who die in service.

Ensuring full amount to the nominees or heirs.


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Met Group Gratuity

Unit Linked Insurance Plan It offers a comprehensive solution for employers to

outsource gratuity management in an effective andintegrated manner.

Benefits-Maturity benefits

In case of retirement, resignation/termination, anddisablement etc.

In case of death of Member.In case the account balance is not sufficient to pay the

stated benefits


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Services Offered

Choice of two linked Funds - Debt Fund and BalancedFund.

MetLife India would provide statement of accountonce in a year.

Switching facility between the two Funds.

Facility to pay the gratuity contribution (both pastservice liability and current

service cost) in installments.Assistance with legal, tax and accounting services.

Annual actuarial valuation to determine contributionunder the Scheme.


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Fund Management Charges


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Premium Allocation Charges The maximum Premium Allocation Charge is

0.50% of the Initial Contribution, and

2% of the Annual Contribution


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What is EDLI?

All employees to whom the Employee's Provident Fund andMiscellaneous Provision Act , 1952 applies, have a Statutoryliability to subscribe to Employee's Deposit LinkedInsurance Scheme, 1976 to provide for the benefit of Life

insurance to all their employees. Under the scheme the insurance benefit is equal to the

average balance to the credit of the deceased employee inthe Provident Fund during the last 12 months.

Thus if the length of service is not adequate and/ or thesalary is low the average balance may be substantially lessand such the benefit to the employee's family is eitherinadequate or non-existent.


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ADVANTAGES TO THE EMPLOYER :

The premium payable by the employer is usually less than the total

contribution being paid by the employer to R.P.F.C; particularly whenthe salary level is high and average age of the group is low.

Settlement of claim is quicker, LIC requires only the death certificateand the Claim Form from the employer.

Premium paid by the employer is treated as normal business expensesfor Income-Tax purpose.

ADVANTAGES TO THE EMPLOYEE:

Each employee is covered for a sum assured ranging between 5,000 to2,00,000 depending upon the current salary.

.Every employee/ worker can be covered for a uniform sum assuredwhich will be decided depending upon the group size.


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