Directors? Employees? Pension savings work for you!
Executive insurance is pension insurance for everything. It is intended for directors and employees in life insurance policies. As part of the insurance, deposits are made for compensations and rewards, with the costs being shared between the employer and the insured employee. The part that is set aside for compensation is used as a severance fund when the employee leaves/retires.
The directors’ insurance plan combines 3 components:
- Savings for retirement age – a component of long-term savings, which can be used after the employee’s retirement. The payment is received in the form of a monthly allowance according to the terms of the policy. This is in contrast to previous years, in which the option was given to choose between receiving a monthly allowance and a one-time capital sum.
- Loss of working capacity insurance – a component that provides insurance coverage in cases of partial or complete loss of working capacity, caused as a result of an event that occurred during the insurance period. In cases such as these, monthly compensation will be paid in accordance with the terms of the policy.
- Life/risk insurance in the event of death – a component that provides insurance coverage when the insured party dies. In such a case, the insurance amount will be paid to the beneficiaries of the insured party, and if there are none – to his heirs according to law.
According to income tax regulations, directors’ insurance is recognized as a provident fund, and entitles both the employee and the employer to income tax relief. The accumulation of savings is also subject to regulations.