The keyman insurance is a life insurance solution that protects businesses, their owners and other key stakeholders of the venture. Under keyperson insurance, the insured is a business owner or one of the main stakeholders. Hence, in case of this individual’s untimely demise, keyman insurance covers the future financial losses that the business or the company may have to go through.

• Secures your business during uncertain events
• Insures your business from the start with a small investment
• Makes your business more credible to potential banks, investors and lenders
• Helps earn the goodwill of employees and vendors
• Offers tax benefits3 under Section 37(1) for the policy premiums paid*
• Financial security for your family if you, as a business owner, are insured.

Yes, the maximum tenure of keyman cover is 65 years with cap of INR 25 Crores.For increased tenure up to age 75 years, shareholding more than 25% is required for self &/or family. The maximum age at entry for keyman cover is 55 years.

All the premiums paid by the company are eligible as business expense u/s 37(1) of Income tax act, 1961. (refer circular 762, dated 1998)

Any claim received under this policy is treated as business income (section 28) in accordance to the provisions of Income tax act, 1961

The employer purchases the policy on behalf of the employees and pays the policy premiums, which will secure them. These are some of the important features that employee insurance offers to the employees.

It is ideal for the employees of Sole Proprietors, Partnership firm or LLP firm and Company (public/ private) management.

• Motivates employees & boosts productivity
• Helps in employee retention
• Increases customer satisfaction & investor confidence
• Easy loans available on investment products bought to fulfil your working capital needs.

There is no restriction as to the minimum number of employees for an organization to opt for Employer Employee Insurance scheme. An organization with any number of employees can opt for Employer Employee Insurance.

Any product including Pension (FG Pension) can be pitched under both schemes of Employer Employee Insurance.    

Family Protection Insurance (under the MWPA) essential for sole proprietors, business partners, company directors and self-employed professionals.

• Gives your wife and children sole and complete rights to the insurance benefits
• Secures the wife and children’s interests from creditors, parents, siblings, and any court of law among others
• Protects the family from financial distress like outstanding debt, litigations, family feuds, etc.

Partnership Insurance ensures that the continuity of the business is maintained even in the eventuality of losing a partner. All the partners are covered as per their respective insurability and get individual policy.

The deceased partner’s legal heirs may ask for their share from surviving partners. In that case the question arises as to how the firm or surviving partners can arrange for purchasing the stake from legal heirs of deceased partner. Partnership insurance can help to avoid such a situation. The firm can purchase insurance under partnership insurance on the lives of all the partners and in the event of premature death of any partner, the firm will receive the insurance proceeds. This fund can be utilized for settling the deceased partner’s share without disturbing the working of the firm.

Only pure term plans (without ROP) are eligible under Partnership Insurance policy as per IRDAI (Ref. Circular 037/IRDA/Life/Mar 06).

Financial eligibility is calculated as Average Profit before appropriation of remuneration and interest to partners limited to profit sharing ratio of the partner * Age multiplier, Adding back of Depreciation as per industry