Groupsavings life insuranceis an effective tool for human resource management and part of modern corporate social responsibility.It combines security, motivation and long-term value for both employees and employers.In the following lines, you will learn how this type of insurance works, what benefits it brings to the business, what tax benefits it provides and which are the leading products on the market.
How does group savings insurance work?
Group Savings Life Insurance combines classic protection against insurance events with long-term accumulation of funds.
- The employer takes out a general policy for a group of employees;
- Contributions are made monthly or annually by the employer;
- Part of each installment goes to insurance protection and the rest to a savings fund;
- In the event of an event (e.g. death, accident, disability) compensation is paid;
- If he lives to the end of the term - the employee receives the accrued amount.
Policies may include additional covers such as critical illness or permanent disability.
✅ What advantages are there for employers?
This type of insurance is a powerful tool for retaining and attracting personnel, as well as for building trust in the company:
- Increases loyalty– employees feel secure and motivated;
- Improves employer brand– positions the company as socially responsible;
- Reduces turnover– lowers the costs of selection and training;
- Flexibility– the conditions are negotiated according to the needs of the business;
- It supports long-term planning– acts as an additional element of the motivational system.
Many companies also use this insurance as a form of additional remuneration.
Tax breaks and corporate benefits
Group savings insurance also provides specific tax benefits for the employer when applied correctly:
- UntilBGN 60 per month per employeeare not taxed under the Personal Income Tax Act (Art. 24, Para. 2);
- Contributions up to this limitare not taxed ...
Groupsavings life insuranceis an effective tool for human resource management and part of modern corporate social responsibility.It combines security, motivation and long-term value for both employees and employers.In the following lines, you will learn how this type of insurance works, what benefits it brings to the business, what tax benefits it provides and which are the leading products on the market.
How does group savings insurance work?
Group Savings Life Insurance combines classic protection against insurance events with long-term accumulation of funds.
- The employer takes out a general policy for a group of employees;
- Contributions are made monthly or annually by the employer;
- Part of each installment goes to insurance protection and the rest to a savings fund;
- In the event of an event (e.g. death, accident, disability) compensation is paid;
- If he lives to the end of the term - the employee receives the accrued amount.
Policies may include additional covers such as critical illness or permanent disability.
✅ What advantages are there for employers?
This type of insurance is a powerful tool for retaining and attracting personnel, as well as for building trust in the company:
- Increases loyalty– employees feel secure and motivated;
- Improves employer brand– positions the company as socially responsible;
- Reduces turnover– lowers the costs of selection and training;
- Flexibility– the conditions are negotiated according to the needs of the business;
- It supports long-term planning– acts as an additional element of the motivational system.
Many companies also use this insurance as a form of additional remuneration.
Tax breaks and corporate benefits
Group savings insurance also provides specific tax benefits for the employer when applied correctly:
- UntilBGN 60 per month per employeeare not taxed under the Personal Income Tax Act (Art. 24, Para. 2);
- Contributions up to this limitare not taxed and with insurances;
- Expenses are recognized fortax recognizedexpenses under ZKPO;
- No income tax is required for the employee with proper structuring.
These reliefs allow the employer to provide real value with minimal fiscal burden.
How to choose the right group life insurance?
Choosing the right group savings insurance depends on the specifics of the business, the number of employees and the goals of the company.Here are the important factors to consider:
- Number and profile of employees– a young team may prefer moreinvestment element, older – greater protection;
- Type of coatings– basic protection, critical illnesses, accidents, disability;
- Budget size– fixed or variable monthly installments;
- Financial stability of the insurer– choose an established company with a good rating;
- Contract flexibility– options to customize, add employees or terminate;
- Transparency of conditions– clearly described parameters, fees and payout rules.
Employers often use the services of insurance brokers to compare quotes and tailor the policy according to corporate goals.
Group Savings Life Insurance provides a strategic advantage for employers looking for a sustainable model to motivate, protect and retain employees.The combination of security, tax benefits and investment value makes it one of the best long-term business policies.
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Groupsavings life insuranceis an effective tool for human resource management and part of modern corporate social responsibility.It combines security, motivation and long-term value for both employees and employers.In the following lines, you will learn how this type of insurance works, what benefits it brings to the business, what tax benefits it provides and which are the leading products on the market.
How does group savings insurance work?
Group Savings Life Insurance combines classic protection against insurance events with long-term accumulation of funds.
- The employer takes out a general policy for a group of employees;
- Contributions are made monthly or annually by the employer;
- Part of each installment goes to insurance protection and the rest to a savings fund;
- In the event of an event (e.g. death, accident, disability) compensation is paid;
- If he lives to the end of the term - the employee receives the accrued amount.
Policies may include additional covers such as critical illness or permanent disability.
✅ What advantages are there for employers?
This type of insurance is a powerful tool for retaining and attracting personnel, as well as for building trust in the company:
- Increases loyalty– employees feel secure and motivated;
- Improves employer brand– positions the company as socially responsible;
- Reduces turnover– lowers the costs of selection and training;
- Flexibility– the conditions are negotiated according to the needs of the business;
- It supports long-term planning– acts as an additional element of the motivational system.
Many companies also use this insurance as a form of additional remuneration.
Tax breaks and corporate benefits
Group savings insurance also provides specific tax benefits for the employer when applied correctly:
- UntilBGN 60 per month per employeeare not taxed under the Personal Income Tax Act (Art. 24, Para. 2);
- Contributions up to this limitare not taxed ...
Groupsavings life insuranceis an effective tool for human resource management and part of modern corporate social responsibility.It combines security, motivation and long-term value for both employees and employers.In the following lines, you will learn how this type of insurance works, what benefits it brings to the business, what tax benefits it provides and which are the leading products on the market.
How does group savings insurance work?
Group Savings Life Insurance combines classic protection against insurance events with long-term accumulation of funds.
- The employer takes out a general policy for a group of employees;
- Contributions are made monthly or annually by the employer;
- Part of each installment goes to insurance protection and the rest to a savings fund;
- In the event of an event (e.g. death, accident, disability) compensation is paid;
- If he lives to the end of the term - the employee receives the accrued amount.
Policies may include additional covers such as critical illness or permanent disability.
✅ What advantages are there for employers?
This type of insurance is a powerful tool for retaining and attracting personnel, as well as for building trust in the company:
- Increases loyalty– employees feel secure and motivated;
- Improves employer brand– positions the company as socially responsible;
- Reduces turnover– lowers the costs of selection and training;
- Flexibility– the conditions are negotiated according to the needs of the business;
- It supports long-term planning– acts as an additional element of the motivational system.
Many companies also use this insurance as a form of additional remuneration.
Tax breaks and corporate benefits
Group savings insurance also provides specific tax benefits for the employer when applied correctly:
- UntilBGN 60 per month per employeeare not taxed under the Personal Income Tax Act (Art. 24, Para. 2);
- Contributions up to this limitare not taxed and with insurances;
- Expenses are recognized fortax recognizedexpenses under ZKPO;
- No income tax is required for the employee with proper structuring.
These reliefs allow the employer to provide real value with minimal fiscal burden.
How to choose the right group life insurance?
Choosing the right group savings insurance depends on the specifics of the business, the number of employees and the goals of the company.Here are the important factors to consider:
- Number and profile of employees– a young team may prefer moreinvestment element, older – greater protection;
- Type of coatings– basic protection, critical illnesses, accidents, disability;
- Budget size– fixed or variable monthly installments;
- Financial stability of the insurer– choose an established company with a good rating;
- Contract flexibility– options to customize, add employees or terminate;
- Transparency of conditions– clearly described parameters, fees and payout rules.
Employers often use the services of insurance brokers to compare quotes and tailor the policy according to corporate goals.
Group Savings Life Insurance provides a strategic advantage for employers looking for a sustainable model to motivate, protect and retain employees.The combination of security, tax benefits and investment value makes it one of the best long-term business policies.