Business Insurance – Armourr Insurance Broking Pvt. Ltd.

Armourr Insurance Broking Pvt. Ltd.

Employer Employee Insurance

It works as a reward program for the employees. The plan has many benefits including:

Immediate tax benefits on premium paid by private limited companies.
Liquidity available from the 13th month onwards at low cost.
Flexibility to repay principal and tax benefit on interest paid.
Better employee retention.
Loyalty benefits with life coverage for employees.
Financial support for Directors to achieve life goals (such as child education, retirement and estate planning).

Keyman Insurance

Keyman Insurance is an insurance policy where:

The proposer as well as the premium payer is the employer.
Life assured is the key employee.
The benefit, in case of the claim, goes to the employer.
Only term plans can be proposed under Keyman Insurance.

The ‘Keyman’ here can be any employee, having a special skill set or substantial responsibilities, who contributes to the profits of that organization.

Partnership Insurance

According to Indian Partnership Act 1932, a partnership is defined as relationships between persons who agree to share the profit of a business run by them all or one or more persons acting for them all.

It is a life insurance that can provide compensation, allowing the deceased person’s share of partnership to be bought from their next of kin.
In case of death of one or more partners , the remaining partners may be obliged to pay a capital sum to compensate the deceased estate for his/her stake in partnership.
Partnership Insurance can release the funds to make this possible and allow the partnership to continue without the involvement of next of kin.
Partnership business must be generating profit in commensurate with the sum assured proposed.
Only term plans can be proposed under Partnership Insurance.

Hindu Undivided Family (HUF)

A Hindu Undivided Family (HUF) consists of individuals who have lineally descended from a common ancestor. In addition to Hindus, even Jain, Buddhist and Sikh families can create HUFs. The concept of a Hindu Undivided Family (HUF) as a separate entity for tax purposes was first recognized in 1917. And over the years, many families have enjoyed tax benefits because of this.

Provisions of the Income Tax Act allow individuals to claim tax benefits on certain payments they make during a year. Similar benefits are applicable for an HUF.

For example, an HUF can pay Life Insurance premium for HUF members, and claim tax benefits under Section 80C. The maximum amount that can be claimed as a deduction under this section as per prevailing tax laws.

Married Women’s Property Act (MWPA)

Section 6 of the Married Women’s Property Act, 1874, (MWPACT), provides that a policy of insurance effected by any married man on his own life, and expressed on the face of it to be for the benefit of his wife, or of his wife and children, or any of them, shall ensure and be deemed to be a trust for the benefit of his wife, or of his wife and children, or any of them according to the interest so expressed, and shall not, so long as any object of the trust remains, be subject to the control of the husband, or to his creditors, or form part of his estate.