Fund Life Insurance Policy
main cause of Provident Fund is to provide the financial help to the employees after
their retirement from the minimum deduction of his salary every month. But if the
employee died before his retirement it will not provide the required financial help
to the nominees and they get a very little amount as compare to the amount, which
he planed to save for his family. To cover this financial loss due to the death
of the employee we are offering our services through our new plan of insurance,
which will provide a reasonable cover to the heirs of a deceased employee of your
company and also gives a better return at the time of maturity of the policy or
on the retirement of the employee.
The Life Insurance against provident fund is permitted in the Provident Fund
Rule 103 H of the Income Tax Ordinance 2000 at the discretion of the employee.
This policy is mostly issued for 20 years term but can be enchased at the
time of retirement if the retirement arises before maturity of the policy. The benefit
of the policy may be different in various cases but in 20 years the policy pays
approximately more then 3.5 times of the sum assured.
The employee will get the benefits of the death coverage as noted below,
An amount equal to the sum assured.
Accidental death benefits equal to the Sum Assured (Max 40,00,000).
Family income 15% of the Sum Assured annually up to the Maturity
of the policy.
An additional increase in FIB by 25% on FIB taken in the policy,
if the policyholder qualifies for healthy life style.
The bonus es announced by State Life Insurance Corporation
on yearly basis.
The employer doesn't bother for any cost of premium. It pays from the employee's
The premium may link to the yearly profit of the provident fund in the individual
account to save the original deducted amount of the employee in the Provident fund
The employee can take a policy without investing money from his pocket.
This scheme reinvests the profit amount in Life Insurance Policy so the employee
can get more benefit out of it in one year.
If any employee changes his/her job frequently then his/her Provident Fund loses
every time when he changes his/her organization but if the policy has taken this
investment cannot be destroyed. It may continue from one to another organization
from PF deduction.
A very little percentage of amount of the total provident fund utilizes in this
scheme and get the biggest coverage to the PF account , the other bigger portion
of PF amount remains invest as usual. So the real cost of this scheme is near to
In some organizations the annual profit percentage on Provident fund is blow the
State Life Policy profit so in that case the employee get better return of profit
with huge Risk Cover by taking this policy on Provident fund account.
For further details, feel free to contact us.