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salary saving plan by statelife

salary saving plan by state life 

salary saving plan by state life the employer signs an agreement with state life for remitting the premium to state life by deducting the same form the salaries of those employees who buy individual policies on a voluntary basis. the draft of the agreement can be had from the new business department of the zonal office.

eligibility requirement  :

the above scheme can only operate if there are at least ten employees willing to participate in it and the aggregate monthly premium is at least RS1000.

type of policies;

the salary saving plan may be applied to any policies the rate of which given in the rate book include child protection policy table 07, in fact, a difficult type of policy may be selected by each of the employees of an organization if so desired.

individual policies are issued to the employee in the usual way but premium notice and receipts are addressed to the employer.

rate of premium;

the rate of premium can be obtained as under;

1-find out the annual premium as given in the rate book.

2-add 5% to the annual premium as given in the rate book.

3-divide by 12

example; age 35, table 03, term 25 years

basic premium per 1000/ is rs 38.93

sum assured RS 20000/

basic premium 38.93×20=778.60

policy fee 50

total 778.60+50=828.60

add5% of RS 828.60 =41.43  ——-870.03

divide by 12 and u get a monthly premium of 72.50 ie 73.00

you will observe that the above premium calculated for the salary saving plan is less than the normal monthly premium. the normal  monthly premium is arrived at by multiplying the annual premium by 0.09 as mentioned in the rate book which in the above case would be ;

you will observe that the above premium calculated for the salary saving plan is less than the normal monthly premium. the normal  monthly premium is arrived at by multiplying the annual premium by 0.09 as mentioned in the rate book which in the above case would be ;

RS 828.60X0.09=74.57 ie 75

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