Life insurance or in NPF
Posted: Mon Jan 20, 2025 10:58 am
The measure is associated with significant expenses for the employer, and not every company can afford it, for example, an oil or gas company. Cumulative insurance involves setting aside a certain amount annually, which is paid to the specialist's family in the event of his death or loss of ability to work.
Life insurance or in NPF
The insurance company can accrue investment interest on the accumulated amount. If the employee suddenly needs significant funds, he can use this interest for his own purposes.
It works like this. Every year, the vnpay database employer transfers a certain amount to the insured person's account. This amount is invested in various projects by an authorized organization, generating income. When the previously agreed upon insurance period expires, the money accumulated during this period is transferred to the employee. If an insured event occurs by this date, he receives the amount specified in the contract. In addition, the relevant legislation allows for the appointment of a beneficiary (i.e., the recipient of monetary compensation upon the occurrence of situations specified in the documentation) to a person other than the employee himself.
You can conclude an agreement with a non-state pension fund (NPF). In this case, it will pay the employee a pension in the future. And this amount almost always exceeds the state one.
All these options provide the employee with the opportunity to receive a guaranteed income under certain conditions. However, for this to happen, the time specified in the VHI or NPF agreement must pass. If the employee is dismissed before this period has expired, he or she loses a significant portion of the benefits.
Download a useful document on the topic:
Checklist: How to Achieve Your Goals in Negotiations with Client
Life insurance or in NPF
The insurance company can accrue investment interest on the accumulated amount. If the employee suddenly needs significant funds, he can use this interest for his own purposes.
It works like this. Every year, the vnpay database employer transfers a certain amount to the insured person's account. This amount is invested in various projects by an authorized organization, generating income. When the previously agreed upon insurance period expires, the money accumulated during this period is transferred to the employee. If an insured event occurs by this date, he receives the amount specified in the contract. In addition, the relevant legislation allows for the appointment of a beneficiary (i.e., the recipient of monetary compensation upon the occurrence of situations specified in the documentation) to a person other than the employee himself.
You can conclude an agreement with a non-state pension fund (NPF). In this case, it will pay the employee a pension in the future. And this amount almost always exceeds the state one.
All these options provide the employee with the opportunity to receive a guaranteed income under certain conditions. However, for this to happen, the time specified in the VHI or NPF agreement must pass. If the employee is dismissed before this period has expired, he or she loses a significant portion of the benefits.
Download a useful document on the topic:
Checklist: How to Achieve Your Goals in Negotiations with Client