Life insurance is a contract between an individual and an insurance company, where the company provides a sum of money to the beneficiary upon the insured person's death.
Life insurance is important as it provides financial security to your loved ones in the event of your death, helping them cover funeral expenses, pay off debts, and maintain their standard of living.
The amount of life insurance coverage you need depends on various factors like your income, debts, and financial responsibilities. It is recommended to assess your financial situation and consult with a financial advisor to determine the appropriate coverage.
An Employer-Employee Insurance scheme is an arrangement in which an employer purchases a life insurance scheme for its employees. It means that the ownership of the policy is with the employer and the premiums are paid by the employer, employee is the beneficiary of the policy. This kind of arrangement helps an employer ensure the social security of their employees and also reduces the employee attrition rate. Besides, the premiums paid towards an Employee Insurance scheme can be claimed as business expenses, and hence, the employer can use them to reduce their income tax* outgo.
