Micro Small Medium Enterprise
As a business owner, you plan everything to keep the business profitable.
You have a vision and motivated by that vision, you put in your time, money and personal skills to make your business grow and last.
However, some of the most crucial planning areas might have gone unattended. Yet they are the cornerstone for any successful business and its owner.
For the first time, exclusive services for the business owners on these topics are available in India.
Who Is The Most Important Person In Your Business?
If you are set up as a Private Ltd. Co with family members as directors, then you must buy “Key person” insurance on all directors. It helps to keep the business afloat when an important family member who was holding key responsibilities of the business is no longer there or disabled permanently. At a nominal cost “Key person Insurance” protects businesses from bankruptcy, imminent closure. Key person Insurance provides the valuable “Cash” when it is most needed. Get a quote for your directors today….
How To Retain Top Employees Of Your Organization For A Long Term?
When Qualified and experienced employees leave the organization, it creates a stress for the management to replace the same talent.
Finding and replacing takes time, cost and probably a lot of profits lost.
For small and Mid-sized businesses, the key profit making asset is their employees. Therefore losing an employee is a costly proposition, which can be avoided using life insurance.
How Does It Work?
- Employer buys a Life Insurance policy, in the name of the employee
- The employer pays the premium and the owner of the policy
- The employee is the life assured and beneficiary of the policy proceedings
- The policy needs to be assigned in favor of the employee in the due course
- The employee will get the maturity lump sum, Tax-free.
- In case of death of the employee, the nominee of the employee will get the sum assured under the policy.
- In case of critical illness or disability, the specified sum assured will be paid to the employee.
- The employer can claim the premium paid as expense u/s 37(1)
- The employee gets a tax-deferred accumulation
- When the policy is assigned in favor of the employee, the surrender value at that time will be income of the employee for that year and taxed accordingly.
- When the policy matures, the entire proceedings are tax-free in the hands of the employee.
Benefits For The Organization
- No need to pay anything extra, Use the existing Salary & bonus structure to fund an Employer-Employee scheme.
- Instead of increment or cash bonus, pay it as premium in a policy
- Buy a combination of “Term” and “Cash value” policies, in the name of the employees where the premium will be paid by the organization
- Different types of policies can be purchased for different grades of employees with different premiums. Policy can be bought for even 1 employee, no minimum group size requirement.
- A strong motivation for employees as they know that if they stay back, they will get a big bounty of maturity benefit TAX-FREE. This increases the longevity of the employees and reduces attrition.
- The insurance policy serves as a additional security to the family of the employee.
- It brings in the emotional bondage for the employee towards the organization.
- Premiums paid for such policies under “Employer-Employee scheme” are deductible as expenses u/s 37(1)- SAVES TA for the organization.
We will help you to do your Insurance planning with the right combination of plans.
LOOKING FOR THE RIGHT INSURANCE SOLUTIONS?
Choosing the right insurance plan is tricky. Let us help you to decide by providing you with a thorough consultation on the matter!