Simpli Finance

Hi Friends,
If you are running a business, you can take out life insurance for your employees just as you take out health insurance for them. There are two types of business insurance. 1. Key man insurance 2. Employee-employer insurance What is the difference between and how it works? Under "key man insurance, we can take out life insurance for the employee of the company who plays a major role in the business and whose absence may cause a loss to the organization. A term plan can be taken for the person, and the value of the cover can be three times the gross profit or five times the net profit of the average three-year return. It can also be 10 times the employee's annual package. The key person should not possess 51% or more of the company, or the key person and their family members should not own more than 70%. The premium paid can be taken as a business expense, which helps reduce the company's tax liability. In the event of the demise of the key man, the death benefit will be given to the company and will be taxable. and this money can be used for new remuneration, training, paying benefits to the employee's nominee, and other expenses. In addition, the employer's insurance company can take out life insurance for their employee. The premium paid will be taken as a business expense, and no tax will be charged to it. After a particular time period, i.e., 8–10 years, insurance cover is assigned to the employee, and at that time, he has to pay tax on its surrender value at that time. The maturity amount will be given to the employee, and it will be tax-free. The employee can also take the income tax rebate under 80 C if he is contributing to the premium. This life insurance provides a sense of confidence among the employees. They remain employed by the same company, so expenditures for the change of employee upon resignation and their training reduce. The company's work does not increase its productivity or profitability. So every organization should buy a life insurance plan under employee-employer life insurance for its growth and to reduce its tax liabilities. I hope this will give a good understanding of business life insurance.

INSURANCE PROVIDES ASSURANCE

Hi Friends,
In the present scenario, uncertainty in life and health of a person leads to financial risk. It can be managed by hedging these risks by insuring ourselves and our families. Insurance provides us financial support during unfortunate incidents. One’s family becomes self-sufficient and lives life with dignity. We buy car insurance because it is mandatory but we avoid buying life insurance and health insurance which can protect our family by mitigating the financial risk. Life insurance for bread earners is needed and health insurance for families is required. There are two types of life insurance one Term insurance and other is the saving plans. Term insurance is pure insurance it has no saving element our family gets financial benefits in case of any casualty. It is a low-budget insurance plan we can get a term insurance plan ten times our annual income. Premium is not refunded in case of a term plan; there is a total return premium plan in term insurance. There is no interest given and also the premium amount is almost 70-80% higher. Guaranteed saving income plans can help us to meet the financial goals of life like children's education, marriage and retirement. We can take tax rebates under 80c and also the maturity benefits are tax-free. 24 companies are working in the life insurance field and these all are regulated by IRDAI. As all the banks are regulated by RBI, I am associated with Edelweiss Tokio life insurance. This Company has good management and provides the best plans in life insurance in the industry for giving maximum benefits to the insured person. You can also analyse it. Please choose the plans carefully so that you may get the best value for your money invested. You can go with any company you like. In every company there are different types of plans, we have to choose it as per our requirement. Always compare their results by benchmarking. Also, provide all the information honestly to the company before buying insurance. Therefore, buy insurance and get assurance. I hope that this article will help you to taking the right decision. If you want to know more we are here to serve you in meeting your financial goals. I also work in mutual funds and financial education which I will write about in the next article. If you like this please share it with you friends and loved ones. See you later!