Overview

 

Why should you take this plan?

 

  • To provide financial security to your group members and their loved ones at nominal cost
  • As part of an overall benefits package for your group
  • Covers all Schemes as mentioned below:
    • Employer-Employee Scheme
    • Employee deposit linked Insurance Scheme (EDLI)
    • Non Employer-Employee Scheme

 

How will this Plan fulfill your requirements?

 

Assured Protection:Sum Assured payable upon the unfortunate demise of the member/employee insured

One Year Renewable Term: This is a One Year Group Term Plan which is renewable on a yearly basis

Free Cover Limit: Avail higher coverage without evidence of health up to the Free Cover Limit subject to eligibility conditions (only for Employer-Employee Schemes)

Simplified Procedures: Procedures are less cumbersome and hassle free. Insurance cover is for all eligible members of the scheme with one policy document issued to the Master Policyholder

Flexibility to avail the benefits as Staggered Payments under Non Employer-Employee Scheme: This feature of periodical payout to protect the corpus from getting wiped out immediately had it been paid as lump sum (only for parents of School/College-going children)

Eligibility

1) Employer-Employee/ Non Employer-Employee Scheme

 

Age at entry# Minimum : 18 years Maximum : 75 years

Expiry Age#

76 years

Policy Term

1 Year, Yearly Renewable Plan

Premium Paying Mode

Yearly, Half Yearly, Quarterly and Monthly

Sum Assured

Minimum

Rupee 5,000 (per member)

Rupee 1 Crore (per scheme)

Maximum

No limit; subject to group characteristics, participation rate and Company underwriting requirements.

Group Size

Minimum

50 members for schemes

Maximum

No limit

2) Employee Deposit Linked Insurance Scheme (EDLI)

 

Age at entry# Minimum : 18 years Maximum : 85 years

Expiry Age#

86 years

Policy Term

1 Year, Yearly Renewable Plan

Premium Paying Mode

Yearly, Half Yearly, Quarterly and Monthly

Sum Assured

Minimum

Rupee  6,01,000 per member or as per provisions of Employee’s Provident Fund & Miscellaneous Provisions Act, 1952, whichever is higher.

Rupee 1,20,20,000 per scheme

Maximum

Rupee 10,00,000 per member

Group Size

Minimum

20 members in a scheme or as per provisions of Employees' Provident Fund & Miscellaneous Provisions Act, 1952, whichever is applicable.

Maximum

No limit

#Age as on last birthday

Features

Death Benefit

  • 1) Employer-Employee Scheme:

    On unfortunate demise of the Insured Member during the Policy Term, the Sum Assured shall be payable to the beneficiary.

  • 2) Employee deposit linked Insurance Scheme (EDLI) Scheme:

    On unfortunate demise of the Insured Member during the Policy Term, the Sum Assured shall be payable to the beneficiary.

  • 3) Non Employer-Employee Scheme:

    On unfortunate demise of the Insured Member during the Policy Term, the Sum Assured shall be payable to the beneficiary.

In case of Parents of School/College going children who are given coverage under this scheme, Company will offer two options of availing the death benefit either in lump sum or as staggered payments by the beneficiary.

Staggered payments - The beneficiary will receive payouts in the form of monthly/annual installments over a period of 2 years to 15 years in either monthly or yearly mode at an interest rate of 5% per annum. The first staggered benefit installment will be payable immediately on the date of death. The staggered benefit installment will be calculated using the following factors depending upon the staggered benefit payment period multiplied with death benefit amount and divided by 1,000.

 

Staggered Benefit Factors per 1,000 Death Benefit
Chosen Period for Staggered payment(in years) Frequency(Payable in advance)
Annually Monthly
2 512.20 43.64
3 349.72 29.80
4 268.58 22.89
5 219.98 18.74
6 187.64 15.99
7 164.59 14.02
8 147.35 12.56
9 133.99 11.42
10 123.34 10.51
11 114.66 9.77
12 107.45 9.16
13 101.39 8.64
14 96.21 8.20
15 91.75 7.82

During the staggered benefit payment period, if a beneficiary wants to take all future balance monthly/yearly payments as a lump sum, the lumpsum benefit payable will be equal to the discounted value of the all future balance staggered benefit payments at an interest rate of 5% per annum

Note - The term 'beneficiary' mentioned above means nominee/legal heir of the member.

However, in case the Master Policy is issued under Lender-Borrower category, the Insured Member shall have an option to issue an authorization in favor of the Company to the effect that in the unfortunate event of Insured Member’s death during the Coverage Term, the claim amount, if any payable under the Master Policy shall first be utilized for payment to Master Policyholder for the outstanding loan amount as specified in Master Policyholder’s Credit Account Statement and the balance amount, if any, payable under the Master Policy shall be paid to Nominee. This option shall however be applicable only for certain categories of Master Policyholders.

The eligible categories of Master Policyholders are Reserve Bank of India (RBI) regulated Scheduled Commercial Banks, NBFC’s having certificate of registration from RBI and National Housing Bank (NHB) regulated Housing Finance Companies in accordance with IRDA guidelines as amended from time to time.

However, in case of Master Policyholder who does not fall under the specified categories, then on the unfortunate event of Insured Member’s death during the Coverage Term, the claim amount shall be payable to Insured Member’s Nominee.

Maturity Benefit

There is no maturity benefit under any of the schemes.

Tax Benefits:

The following tax benefits will be applicable as per the prevailing tax laws for Employer-Employee Schemes:

  • Premium paid by the Policy Holder, in case of an employer paying on behalf of the employees, is considered as part of the business expenses under Section 37 of Income Tax Act, 1961 and is tax deductible
  • Premium paid by the employer is not treated as a perquisite in the hands of the employee.
  • All claim payments are considered as non-taxable receipts.
  • Service Tax and education cess as applicable will be charged over and above the quoted premium.

Under Non Employer-Employee Schemes, the members can avail tax benefit in respect of the premium paid as per the prevailing tax laws.

Tax laws are subject to change. Please refer to your tax consultant for details.