In the fast changing business world and
present competitive scenario in the trade and industry, it has become
imperative for all the prudent and far sighted employers to retain the services
of the trained and the experienced executives/employees with the company whose
services have major contribution for the growth of the business qualitatively
and quantitatively as well.
An employer can use the life insurance
policy as an encouragement for the employee to continue with him since the
employer has to spend considerable amount of money and time to train a new
employee and moreover upon exit of such an existing employee, the employer may
lose a already trained and trust worthy person.
An
Employer-Employee Insurance scheme is an arrangement in which an employer
purchases a life insurance scheme for its employees. It means
that the premiums are paid by the employer, but the beneficiaries of the policy
are their employees. It acts as an additional benefit provided by an employer
to their existing employees.
Corporate companies, big organisations,
Institutions, Boards, Trust can insure their employees, workers etc., this
would help the employees to trust the employer in a better way. This may also
work as an encouragement to work more and grow the organisation.