Page 26 - IC24 LEGAL ASPECTS OF LIFE ASSURANCE

Insurable interest should exist while affecting group insurance

and all material facts should be disclosed.

Group insurance plans are renewable on a yearly basis.

In case of pension plans, the following options are offered:

pension for life, pension with return of premium, pension for

specified time period, pension for life

Under retirement benefit schemes, which are recognised by

the income-tax authorities, the basic requirement is

constitution of an irrevocable trust fund to which contributions

are paid during the active service period of the

employees.

It is the well-recognised principle of taxation that under a

retirement benefit scheme

✓ tax free build-up of retirement provision should be allowed

and the emerging benefits taxed or