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Life Insurance through Provident Fund
It is an auto run retirement plan to improve and enhance
the benefits of Provident fund for employees at their own discretion. The details
of our proposal are as under.
Provident fund scheme is known as good scheme to provide financial help to the employees
at the time of retirement, but it doesn’t cover the loss occurred due to discontinuation
of the PF due to early death of the employee. No PF trust ensures to pay the planned
amount, if the employee lost his life at any time during his job. This plan ensures
the payment of nearest planned amount of PF if any loss of life is occurred before
maturity of this plan.
6 Reasons for Permitting Life Insurance Against P.F
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1) Its Legal Right of the Employee as the PF rules permits. |
4) Consistent Investment due to switching of Job. (Transferable
Policy)
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2) Adding the Life Insurance Coverage in P.F without
any extra cost. |
5) Shield against decreasing P.F Profit Rate. |
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3) Ensure Retirement Benefit if employee die before retirement. |
6) Increase Loyalty of Employees towards employer. |
Example:
Annual premium will be paid directly from Employees Provident Fund as per PF rules.
Employee Age 40 Years.
Annual Premium Rs. 51560.
Sum Assured Rs. 10,00,000.
Policy Maturity & Job Retirement Age is 60.
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Policy Benefit Graph
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You Pay
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1,082,880
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Death Cover
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2,000,000
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Maturity
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4,546,000
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Investment Compairison Graph
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You Pay
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1,082,880
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Bank PLS Rate 4%
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1,676,796
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DSC @ 7.812
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2,616,314
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SLIC Maturity
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4,546,000
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Comparison
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Group Insurance |
Gratuity |
Provident Fund |
Proposed PF Life Insurance |
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Employees Contribution |
Yes |
No |
Yes |
No* |
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Employer's Contribution |
Yes |
Yes |
Yes |
No |
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Manged by Employer
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Yes |
Yes |
Yes |
Yes |
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Death cover |
Yes |
No |
No |
Yes |
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Retirement
Benefit |
No |
Yes |
Yes |
Yes |
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Transferable |
No |
No |
No |
Yes |
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Guaranteed by Govt. of Pakistan |
No |
No |
No |
Yes |
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Pension for Nominee |
No |
No |
No |
Yes |
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Personal Loan Facility |
No |
No |
Yes |
Yes |
* The premium will be payable from the interest accumulate
in the individual’s PF account. The employee will not contribute any additional
amount for it.
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