Life Insurance

Deposit Administration Policy

This is an investment vehicle for retirement benefits schemes under which the insurer removes the usual insurance guarantees and give our clients a chance to directly participate in the investment performance of our pooled life fund to earn returns (allocated annually in arrear) the Company makes from investment.

The insurers ensures each scheme’s contributions are prudently invested to attain the desired growth that will match its past and future service liabilities. The funding rates to registered schemes can vary from 5% to 30% of the employee’s salary subject to the limit set by Income Tax Department

This contract comprises of the following occupational retirement benefits scheme types:

1) Provident scheme

This is a retirement benefits scheme arranged in the manner explained above where benefits are paid in lump sum on attainment of retirement age. Retirement age is fixed by the sponsor and varies from scheme to scheme but is usually from age 50 to 65.

2) Pension scheme

This scheme pays benefits to members who have reached retirement age in the form of a pension for the remainder of the pensioner’s life. It is common for a scheme to convert part of the employee’s pension into a lumpsum at retirement to help the employee meet the initial cost of change from an active employment to a retirement life. The current recommended lumpsum is between one quarter and one third of the total annual pension depending on the type of scheme.