UFS

Solutions through Employee Benefits

Narasimha Prasad Zonal Manager Employee Benefits MetLife India Insurance Co Ltd.

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Employee Benefit Solutions (Under life insurance)

Employee Benefit

Mandatory

Voluntary

P F / EDLI

Gratuity

Group Term Life

Super Annuation

Leave Encashment

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Did you know Employee benefits are not expensive

Group term scheme will be less than 2 % of your yearly salary cost Funding for group gratuity, on an average, will be less than 5% of your annual wage bill Employer gets an Income tax benefit Funding for employee benefits is financial prudence Substantial benefit at a minimal cost

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Employee Retention

Hassle free enrollment

Provides financial security to the family and dependents of the employee

Serves part of corporate social responsibility also ensures a reasonable return on the money invested

Cheaper than individual term insurance coverage, benefit amount not taxable in employees hands

Life cover for anticipated service in the case of pension related programs Gratuity and group term life have become standard benchmarks
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How EB schemes work

Group term schemes can be either employer paid or employee paid
Company can offer a basic life cover and act as a facilitator for top ups or voluntary insurance schemes
Graded covers
Salary multiple Uniform cover for all employees

Two kinds of voluntary or top up schemes

Policies that sever when employee retires / resigns Policies that continue post retirement / resignation of employee

Employee benefit schemes do not burden your finances

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Tax implications
Group Term life
Premium paid can be deducted as a business expenditure [under

sec 37(1)]
Claim is not taxable as it is insurance money

Group gratuity
Contribution can be deducted as business expenditure [US 37(1)] Tax benefit available upto 8.33% of the salary bill Gratuity money upto Rs. 10 lakhs not taxable for employee

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Tax implications (contd.)

Superannuation
For employee contribution:
There is a benefit of upto 1 lakh as per section 80 c of the IT act. Anything above that will not qualify for exemption.

For employer contribution: Employers contribution is allowed as business expenditure upto 15% of employees basic salary On superannuation, the employee can commute upto1/3 of the total Superannuation corpus amount and the rest should be used to purchase annuities.

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Why Life Insurance Company ?

Integrated schemes
Gratuity, superannuation, leave encashment and term insurance

Better synergies with the employer

Manage employee movements / modifications Management of claims

Employer sponsored programs

Combine group and individual solutions Provide online Term Insurance covers for additional individual cover Offer top up schemes Better pricing and discounts to employees on some of the above schemes
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Why MetLife India

More than 140 years experience worldwide
277 MetLife branches in 234 locations across India Total funds handled by our investment team is in excess of Rs 7500 crores

Provide employee benefit solutions to over 600 companies in India

Cover more than 1.5 million lives under various group schemes Extensively trained relationship and client servicing teams. High client retention levels due to world class service standards
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Our Customers in India

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