At present my company is not having any employee death relief scheme. We are 40 employees in the company and we want to ensure our group against any mishappening, We have planned to contribute a sum of Rs 8 Lacs and we want to keet it as the Insurance sum assured for any employee who dies. Now the question is in which kind of bank account this money shall be kept as in normal savings acc it will attract tax.
Our scheme is to continuously deposit a monthly sum of 500 per employee (Rs 20000 per month for 40 employees) so that the amount in the account will keep growing. The money in the account will be purely used for death insurance. If everything goes fine and no death takes place, the whole amount will be shared equally by all employees. Please suggest in order to implement a plan like this how shall we proceed.
