Max Life Insurance is one of the biggest insurance providers in the Indian insurance market. The company was created as a joint venture between the Indian company, Max India, and the Japanese company, Mitsui Sumitomo Insurance Group Holdings Inc. The company has seen steady growth over the years and has an impressive claims settlement ratio of over 90%.
Among the various products offered by the company are its attractive group insurance plans which are meant to be used when groups, mostly companies and other employers, want to take care of their employees’ gratuity, leave encashment, EDLI (Employees Deposit linked Insurance) or provident fund liabilities.
The Group Super Life Premier Plan in lieu of EDLI is a scheme designed to help companies pay gratuity to their employees when they retire, resign or pass away while still employed with the company.
- This plan can be used to invest in funds so as to build a portfolio that will help pay for gratuity liabilities.
- The plan offers each member of the group a fixed cover of Rs.1,000
- Since the plan charges only for fund management, mortality and surrenders, it is quite economical.
- It also offers 0.1% per annum as guaranteed loyalty addition if the fund value is above Rs. 10 crore.
Suppose there’s a company that has been in operation for a few years. It employs 35 people, some of whom have been with the company for over 5 years. If one of these people want to leave, the company will need to pay the person his/her gratuity benefits. However, if the company has not built enough liquidity at the time, this plan will comfortably take care of this obligation.
This is a plan that has been introduced to help employers cater to the life insurance liabilities in lieu of the EDLI scheme.
- It helps companies offer employees something more than a pay cheque thus helping employees secure their futures.
- This plan can be taken in addition with the Group Accidental Death Benefit Premier rider which helps enhance the insurance cover.
- Employers get benefits on taxes under section 37 (1) A of the IT Act.
Suppose there is a company that has 40 employees. Some of the employees start asking the company what their, the companies, plans are to provide for the employees. The best answer the company can give is the Group Super Life Premier plan as it helps companies provide life insurance for employees and the employees can rest assured that in case they pass away, their families won’t have to suffer a lack of funds.
The Group Super Life Premier is a group term plan which can be used to make sure the future of the employee’s family is secured against unfortunate events.
- This plan provides the members of a group with simple term insurance.
- The insurance covers death caused by any reason.
- The beneficiaries of this policy don’t have to pay tax on the benefits.
- The plan offers death and surrender benefits.
- It can also be coupled with an accidental death benefit rider that helps enhance the cover.
Shyam, the sole breadwinner of his family, worked for a company that had opted for the Group Super Life Premier plan. One day, while coming back from the office, he met with an accident and, unfortunately, passed away. Since he was covered under this plan, his family gets the sum assured and don’t have to worry about their financial future.
This is a plan that can be used to secure the repayment of loans against the unfortunate event of the borrower’s death.
- For companies that give out loans, this policy provides them with the security of not having to worry about the loan in case the borrower dies before paying it back.
- The benefit for borrowers is that in case they do die, their families don’t have to pay back the loans.
- The plan also comes with surrender benefits.
- The death benefits of this plan can be taken as level cover or decreasing cover with a moratorium option.
Rahul took a loan of Rs. 15 lakhs. When he had paid back half of the loan, he fell ill and passed away. Now, since the lender had opted for this policy, the loan is paid back by Max Life and Rahul’s family does not have to bear the burden of paying back the remaining amount.
Why Max Life Group Insurance Plans?
Max Life group insurance plans offer policyholders a lot of benefits but the main ones are:
- These plans can be used as a tool to provide an encouraging environment for employees to work in which helps with employee retention.
- They also help employers make sure that they are capable of fulfilling their responsibilities towards the employees.
- Some of the plans will let premiums paid be labelled as a business expense, which helps employers.
- Some plans help ensure that the families of the employees or members of the group don’t suffer, financially, in the event of the employee's death.
Investing in Max Life group insurance plans can provide a double benefit to employers. It gives them the capability to cover responsibilities like life insurance & gratuity, and it also allows the employees to ensure that their families don’t have financial problems in their absence.
Other Max Life Insurance Plans
GST of 18% is applicable on life insurance effective from the 1st of July, 2017