Life Insurance with Cash Value Accrual
Life insurance with cash value accrual, including the formation of private pension assets, is one of the elements of the company's personnel management system, which allows for the modernization of the compensation structure and increases the employees' motivation by providing additional social guarantees.
The employee gains additional financial assets, which accrue during the contract term and may be used at the employee's discretion. Available during the period of accumulation is additional protection against accidents and disablement, as well as financial support in case of temporary disability.
The employer may shape the cash value accrual according to the personnel policy of the company:
- All or some of the company's employees are provided with asset accrual, which becomes irrevocably the employee's property.
- The employer has the ability to determine the cases where the accumulated amount is made available to the employee prematurely. For example, in the case of illness the company may direct the insurance company to pay out the accrued amount fully or partly to the employee before maturity in order to cover medical expenses.
- The company retains the right to terminate the employees' insurance and dispose of the accrued assets at will.
Such asset creation gives the employees a clear picture of the company's personnel policy. This is an essential difference from the pension funds, where the owner of the accrued assets is always the employee. The creation of private pension savings provides the employee with a guaranteed standard of living in the old age and provides the possibility of not having to depend on the state pension.
By concluding a life insurance contract with asset accrual, the employer is not only providing the employees with additional financial guarantees, but also obtains tax relief.
Find out more about the life insurance program!
Come to any SEB banka Client Service Center or the AAS "SEB dzīvības apdrošināšana" Client Service Centers in Riga and elsewhere in Latvia! Free information is available by calling the SEB banka information telephone 8777 or the SEB dzīvības apdrošināšana client contact telephone 7079800 free of charge.