SBI Life Insurance CapAssure Gratuity Scheme Plan

Introduction:
Gratuity is a statutory benefit, governed by Payments of Gratuity Act, 1972. As per the Act, gratuity is payable if an employee has rendered minimum 5 years of service at the time of exit. The minimum benefit payable is 15 days salary based on last drawn salary for each service year rendered. However, an employer can better the terms of benefits..Here, the principal concern will be to safeguard and availability of sufficient funds to meet the company’s obligation for statutory Gratuity Payments. Hence, you would definitely want prudent fund management at least of the possible costs. Therefore SBI Life provides SBI Life – CapAssure Gratuity Scheme – a scheme that not only guarantees your investment but also offers additional funding and many more added benefits…!

SBI Life Insurance CapAssure Gratuity Scheme Plan:

It is a Non-Participating yearly renewable traditional Group Gratuity Scheme. Under this scheme, the contributions paid continue to accumulate on traditional platform of investments and at the end of the financial year, an investment income earned on your contributions is credited to your gratuity fund account.

 

 

Key Features: 

 

 

Capital Guarantee on Fund Under Management
Unique Pooling Fund Advantage: Get higher returns based on aggregated value of all your non-Linked funds
Additional Funding upto 3% to absorb exit penalty charged by the previous insurer
Flexibility to transfer partially your fund from this scheme to our existing Unit Linked schemes!
No Suicide Exclusion clause for basic life cover
Additional benefit for your employee through Group Accidental Death and Permanent Disability rider (UIN: 111B002V01)
 



 

Benefits:

 

 

On Retirement/ Resignation/ Termination: Higher of accrued gratuity benefits payable as per scheme rules or the Gratuity Act.
On occurrence of Total Permanent Disability (TPD) : Higher of accrued gratuity benefits payable as per scheme rules or the Gratuity Act + Rider Sum Assured, if any, in case of TPD due to accident, will be payable to the employee.
On an unfortunate Death: Higher of accrued gratuity benefits payable as per scheme rules or the Gratuity Act + Basic Sum Assured as opted for by the master policy holder + Rider Sum Assured, if any, in case of death due to accident.
However, maximum benefit under SBI Life – Accidental Death & Total Permanent Disability (AD&TPD) rider will be limited to lower of basic sum assured or Rs. 5 Lacs.
Grace Period:
A grace period of 30 days will be allowed for payment of life cover premium.
However, if death occurs during the grace period, the death claim shall become payable subject to the receipt of the due and unpaid risk premium or renewal risk premium for the entire group from the Master Policyholder.
In case of non-receipt of the risk/rider premium within a grace period of 30 days, the life cover/rider would lapse. However, the accumulation of the fund will be continued without life cover/rider and the gratuity claims will be settled subject to the availability of funds.Revival
Period:
Life Cover can be revived within two years from the first due but unpaid premium, subject to payment of risk premium for the future.Charges:
Our charges are certainly most competitive and are designed to benefit you irrespective of size of your Gratuity fund. We ensure you pay only for what you benefit — No hidden costs! What more….. we ask no Fund Management Charges, no Administration Costs and recovery of Additional Funding is without interest !!!

 

 

Tax Benefits*:

 

 

For Employer:

The initial and Annual contributions made through an approved Gratuity trust can be claimed as business expenditure as per the provisions under section 36 (1) (v) of the Income Tax Act, 1961 subject to maximum limit of 8.33% of annual salary in respect of each member.
Income of investments is exempt from tax under section 10(25) (iv) of the Act.
For Employee:
Gratuity benefits are tax free up to Rs. 10,00,000 u/s 10(10) in the hands of employee.
Gratuity payment may be bettered by employer – over and above Rs. 10,00,000 taxable. (However, in this case the tax free limit as per above will not change.)
The contribution made by the employer is not included in the value of taxable perquisites in the hands of the employee.
Any death benefit under the Group Term Insurance is tax-exempt under section 10 (10D) of the Income Tax Act, 1961
*Above tax benefits are as per Income Tax Act, 1961 and Income Tax Rules, 1962. Please consult to your Legal/ Tax expert for details.
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