SBI Life Insurance CapAssure Leave Encashment Scheme

Introduction:
As per the Accounting Standard (AS-15) (revised 2005), it has become necessary for the employers to provide for the accrued liabilities in respect of Leave Encashment benefits available to all the employees in the books of accounts. It helps the employer in ascertaining the true cost of their products and services.Hence, SBI Life provides SBI Life Insurance CapAssure Leave Encashment Scheme – a scheme that not only guarantees your investment but also offers additional funding and many more added benefits…!

SBI Life – CapAssure Leave Encashment Scheme (CA-LE):
It is a Non-Participating yearly renewable traditional group leave encashment 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 CA-LE 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
No Suicide Exclusion clause for basic life cover
Additional benefit for your employee through our Group Accidental Death and Permanent Disability Rider (UIN: 111B002V01)
 



 

Benefits:

 

 

On Retirement/ Resignation/ Termination: Accrued Leave Encashment benefits as per scheme rules.
On occurrence of Total Permanent Disability (TPD): Accrued Leave Encashment benefit as per scheme rules + Rider Sum Assured, if any,in case of TPD is due to an accident.
On an unfortunate Death: Accrued Leave Encashment Benefit, as per scheme rules will be payable + Basic Sum Assured as opted for by the master policy holder + Rider Sum Assured, if any, in case death due to accident.
However, maximum benefit under 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 Leave Encashment 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*: 

 

 

The cash equivalent of the leave Encashment Benefit as and when paid by the employer is deductible from his income under section 43B (f) of the Income Tax Act.
For the Employee the leave encashment benefit is taxable under section 15 of the Income Tax Act
However the benefit received by the employee at the time of retirement, gets tax relief as per section 10(10AA) of Income Tax Act, subject to maximum of ten months leave.
The amount of risk premium paid for Life Insurance cover will be treated as business expenses.
*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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