Financial Planning
Life Insurance
2024-05-14 5 Min read
0
Until a few years ago, a hefty salary and a few weeks of leave were enough to attract as well as retain employees. However, with an evolving landscape of employee benefits in India, more and more millennials are expecting better and more holistic benefits from their employers. And as the talent acquisition war rages on, employers who fail to look after their employees are likely to run their enterprise aground.
The evolving landscape of employee benefits in India
In the current landscape, as businesses deal with a shortage of talent amidst the rising competition to get the best, it is only by inspiring loyalty and dedication among employees that they can hope to attract and keep top talent. Thanks to this perfect example of symbiosis, the fast-growing economy of India is seeing a positive change in the area of employee benefits and insurance.
As more and more companies are scrambling not just to attract but also to retain talented individuals, group-term life insurance is slowly yet steadily emerging as a sought-after employee benefit. By offering life insurance to their employees, employers show their seriousness to their team’s welfare. This, in turn, increases loyalty, job satisfaction and overall efficiency of the employees.
As more and more companies are scrambling not just to attract but also to retain talented individuals, group-term life insurance is slowly yet steadily emerging as a sought-after employee benefit. By offering life insurance to their employees, employers show their seriousness to their team’s welfare. This, in turn, increases loyalty, job satisfaction and overall efficiency of the employees.
SUD Life Group Term Insurance Plus
While the market may seem brimming with group insurance products, choosing the right kind of policy can become a little overwhelming. Generally, traditional life insurance policies can be complex and often a little heavy on the individual’s pocket. Lengthy forms, long waiting periods and lack of awareness often make it difficult for numerous sections of society to opt for life insurance.
SUD Life Group Term Insurance Plus, on the other hand, is a rather simple product. Its inclusion can be a defining factor in your employees’ benefits package. Recognising the importance of the familial unit’s financial security in an employee’s well-being puts you in good standing. With the coverage that you offer, you can not only address your employees’ concern for their family’s future and consequently their overall well-being. In essence, the SUD Life Group Term Insurance Plus plan will allow a lump sum payment to the appointed nominee in case of the insured’s death.
A group term insurance plan is a temporary coverage that employers can offer their employees till the time the employee works with them. In most cases, the term life insurance is not a portable benefit. The coverage will end once the employee quits or retires from the company. Typically, the coverage is dependent on the employer’s yearly salary and also their age.
Under a single policy, several people are covered. Let us take a look at how you strategically utilise the SUD Life Group Term Insurance Plus to attract and retain top talent.
1. Death benefit
When an insured employee dies during the term of the policy, the appointed nominee receives a guaranteed amount in the form of a death benefit. From funeral expenses to a means to meet their everyday expenses, this amount can help the bereaved family in any way they deem right.
2. Payment of premium
The SUD Life Group Term Insurance Plus allows the master policyholder (the employer) a lot of flexibility in paying the premium. Any convenient frequency mode can be chosen from annual, half-yearly, quarterly or monthly.
In most cases, the employers provide this benefit at no cost. However, depending on the job profile, company size, years of employment, etc, an employee may have to bear a certain share of the premium along with the master policyholder.
3. Policy tenure
With SUD Life Group Term Insurance Plus plan, the coverage is for a period of 1 year. After this, the policy can be renewed.
4. Coverage by default
Typically, SUD Life Group Term Insurance Plus covers all employees. So, when a new team member joins, they join the group. The default coverage thus becomes very simple, quick and convenient.
5. Customisable
The employer, as well as the employees, enjoy the advantage of customising SUD Life Group Term Insurance Plus as per their needs. The policy comes with two riders that allow an enhancement in the coverage: Accidental Death Benefit and Accidental Dismemberment.
If required, an employee can choose other life insurance plans by SUD Life in case there is a need to increase the coverage. There is no limit on how many term plans an individual can have. Keeping in mind that the coverage of a group term plan might not always be adequate, it is wise to ensure proper and adequate coverage for one’s family.
6. Tax benefits
As discussed earlier, in most cases, the employer pays the premium. So, the tax-saving advantage is for the employer. Under Section 37 of the Income Tax Act of 1961, the premium paid is taken as a business expense.
If in case the insured employee is also bearing the share of the premium, then as per Section 80C, they can avail of a tax benefit of up to INR 1.5.
The death benefit that is received by the nominee is not taxable, as per Section 10(10D).
SUD Life Group Term Insurance Plus, on the other hand, is a rather simple product. Its inclusion can be a defining factor in your employees’ benefits package. Recognising the importance of the familial unit’s financial security in an employee’s well-being puts you in good standing. With the coverage that you offer, you can not only address your employees’ concern for their family’s future and consequently their overall well-being. In essence, the SUD Life Group Term Insurance Plus plan will allow a lump sum payment to the appointed nominee in case of the insured’s death.
A group term insurance plan is a temporary coverage that employers can offer their employees till the time the employee works with them. In most cases, the term life insurance is not a portable benefit. The coverage will end once the employee quits or retires from the company. Typically, the coverage is dependent on the employer’s yearly salary and also their age.
Under a single policy, several people are covered. Let us take a look at how you strategically utilise the SUD Life Group Term Insurance Plus to attract and retain top talent.
1. Death benefit
When an insured employee dies during the term of the policy, the appointed nominee receives a guaranteed amount in the form of a death benefit. From funeral expenses to a means to meet their everyday expenses, this amount can help the bereaved family in any way they deem right.
2. Payment of premium
The SUD Life Group Term Insurance Plus allows the master policyholder (the employer) a lot of flexibility in paying the premium. Any convenient frequency mode can be chosen from annual, half-yearly, quarterly or monthly.
In most cases, the employers provide this benefit at no cost. However, depending on the job profile, company size, years of employment, etc, an employee may have to bear a certain share of the premium along with the master policyholder.
3. Policy tenure
With SUD Life Group Term Insurance Plus plan, the coverage is for a period of 1 year. After this, the policy can be renewed.
4. Coverage by default
Typically, SUD Life Group Term Insurance Plus covers all employees. So, when a new team member joins, they join the group. The default coverage thus becomes very simple, quick and convenient.
5. Customisable
The employer, as well as the employees, enjoy the advantage of customising SUD Life Group Term Insurance Plus as per their needs. The policy comes with two riders that allow an enhancement in the coverage: Accidental Death Benefit and Accidental Dismemberment.
If required, an employee can choose other life insurance plans by SUD Life in case there is a need to increase the coverage. There is no limit on how many term plans an individual can have. Keeping in mind that the coverage of a group term plan might not always be adequate, it is wise to ensure proper and adequate coverage for one’s family.
6. Tax benefits
As discussed earlier, in most cases, the employer pays the premium. So, the tax-saving advantage is for the employer. Under Section 37 of the Income Tax Act of 1961, the premium paid is taken as a business expense.
If in case the insured employee is also bearing the share of the premium, then as per Section 80C, they can avail of a tax benefit of up to INR 1.5.
The death benefit that is received by the nominee is not taxable, as per Section 10(10D).
Conclusion
Exceptional employers will always prioritise the mental, physical and financial well-being of their employees. The unpredictability of life and worry of their loved ones can often take a toll on workers’ emotional health. Intending to foster a caring culture that ensures thriving employees, a lot of companies, firms, businesses and organisations are investing in group-term insurance plans. It’s a feeling of trust that they need to value to nurture a committed and loyal workforce.
With the increasing competition for talent, where highly skilled individuals are in great demand, SUD Life Group Term Insurance Plus plan can be a game changer for your company. Offering such a benefits package can surely enhance the chances of recruitment as well as retention of the best talent.
Reference: SUD Life Group Term Insurance Plus (UIN: 142N046V04)
With the increasing competition for talent, where highly skilled individuals are in great demand, SUD Life Group Term Insurance Plus plan can be a game changer for your company. Offering such a benefits package can surely enhance the chances of recruitment as well as retention of the best talent.
Reference: SUD Life Group Term Insurance Plus (UIN: 142N046V04)
Disclaimer
Star Union Dai-ichi Life Insurance Company Limited is the name of the Insurance Company and “SUD Life Group Term Insurance Plus ” is the name of the plan. Neither the name of the insurance company nor the name of the plan in anyway indicates the quality of the plan, its future prospects or returns. SUD Life Group Term Insurance Plus (UIN: 142N046V04)
Star Union Dai-ichi Life Insurance Company Limited IRDAI Regn. No: 142 | CIN: U66010MH2007PLC174472
Registered Office: 11th Floor, Vishwaroop I.T. Park, Plot No. 34, 35 & 38, Sector 30A of IIP, Vashi, Navi Mumbai – 400 703 | Contact No: +91 22 7196 6200 | 1800 266 8833 (Toll Free) | Timing: 9:00 am – 7:00 pm (Mon – Sat)| Email ID: customercare@sudlife.in | Visit: www.sudlife.in | For more details on risk factors, terms and conditions, please refer to the sales brochure carefully, before concluding the sale. |Trade-logo displayed belongs to M/s Bank of India, M/s Union Bank of India and M/s Dai-ichi Life International Holdings LLC and are being used by Star Union Dai-ichi Life Insurance Co. Ltd. under license.
Star Union Dai-ichi Life Insurance Company Limited IRDAI Regn. No: 142 | CIN: U66010MH2007PLC174472
Registered Office: 11th Floor, Vishwaroop I.T. Park, Plot No. 34, 35 & 38, Sector 30A of IIP, Vashi, Navi Mumbai – 400 703 | Contact No: +91 22 7196 6200 | 1800 266 8833 (Toll Free) | Timing: 9:00 am – 7:00 pm (Mon – Sat)| Email ID: customercare@sudlife.in | Visit: www.sudlife.in | For more details on risk factors, terms and conditions, please refer to the sales brochure carefully, before concluding the sale. |Trade-logo displayed belongs to M/s Bank of India, M/s Union Bank of India and M/s Dai-ichi Life International Holdings LLC and are being used by Star Union Dai-ichi Life Insurance Co. Ltd. under license.
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