Employer – Employee
Employer (proposer) takes life insurance policy on the life of a designated employee, where benefits are payable either to the employee or to their family in the event of death of employee while in service.
Key Man Insurance
An insurance policy taken by a business firm to compensate the financial losses that could arise from the death of the key person of the business
Partnership Insurance
Partnership insurance is an instrument that provides financial stability that ensures business’ buoyancy. The remaining partners in a business can buy the business interest of a deceased partner from the legal heirs using proceeds from Partnership Insurance
MWPA
Married Woman Property Act
Section 6 of the MWPA allows individual to buy Insurance policy in his name and create a trust in favour of his wife and children. No separate trust is required to be formed under Indian Trust Act. If done so, then the maturity, surrender or death proceeds out of the policy will be the property of the beneficiaries and no creditor of the policyholder can have a claim on it.
HUF
Hindu Undivided Family
HUF means Hindu Undivided Family. You can save taxes by creating a family unit and pooling in assets to form a HUF. HUF is taxed separately from its members. A Hindu family can come together and form a HUF. Buddhists, Jains, and Sikhs can also form a HUF. HUF has its own PAN and files tax returns independent of its members.
