The Savings Plan is a high value unit linked life insurance product with a substantially higher unit allocation in the early policy years providing rapid accumulation of cash values. The plan is specifically designed for group schemes where there is a need for such higher cash values and fund accumulation.
The fund accumulated through the plan may be used for education and marriage of children, purchase of a house, expanding business, retirement income or any other purpose.
The Savings Plan is ideal for individuals and groups where the employees would prefer to pay their contribution through withdrawals from their Provident Fund balances. The plan makes use of the provisions of the Income Tax Rules 2002 under which members of Recognized Provident Funds can withdraw funds from their provident fund balances and pay towards the contribution of life insurance plans.
The contributions to the Plan will buy units in one of the EFU Growth Funds. The Savings Plan is designed to provide a large cash sum at the end of your selected period.
The plan is funded by contributions from the employees’ Provident Fund balance. Each covered employee needs to give a written authorization to the trustees of the Provident Fund to make permanent withdrawals and pay the premium to EFU Life. The trustees, on an annual basis, would then make the necessary deductions from the employees Provident Fund balance and make the payment of premium to EFU Life.