The Group Credit Life Insurance Plan is a non-participating, non-linked, single premium payment, group term insurance policy. Under this scheme, a risk cover against death is offered on the life of the group member for the duration of the policy tenure. This policy can be purchased for employees of an organisation or affinity groups that have at least 50 members. Tax benefits can also be availed as per the provisions of the Income Tax Act.
In order to be enrolled under this scheme as a group member, you will have to meet the eligibility criteria set by LIC.
|Parameters||Criteria for eligibility|
|Minimum age at entry||18 years|
|Maximum age at entry||60 years|
|Maximum age at maturity||65 years|
|Minimum group size||50 members|
The sum assured is the amount of money that will be paid to the nominee in the event of the policyholder’s death, during the policy tenure. The sum assured is usually chosen at the time of purchasing the policy.
|Minimum Sum Assured||Rs.4 lakh|
|Maximum Sum Assured||No limit|
The premium is a certain predefined sum of money that will have to be paid to the insurer by the master policyholder. Paying the premium on-time will keep the policy from lapsing and will enable the members of the group to avail the benefits provided by the policy.
|Minimum term of the policy||5 years|
|Maximum term of the policy||35 years|
|Premium Payment Mode||Single Premium|
* Premiums vary based on age, location, plan term, and other factors.
|Death Benefit||In case the life assured suffers an untimely death during the policy tenure, the sum assured will be paid to the nominee.|
|Maturity Benefit||No maturity benefit will be paid even if the group member survives till the completion of the policy tenure.|
In case a group member commits suicide within a year of being enrolled under this scheme, the insurer will not pay the death benefit. In place of the death benefit, 80% of the premium paid at the inception of the policy will be given to the nominee.
In case this scheme is purchased by a group where being enrolled under the life cover is compulsory for every new entrant, the suicide exclusion will not be applicable.
|Loan||Members cannot avail a loan against this policy.|
|Free-Look Period||A free-look period of 15 days is provided to the policy buyer. Thus, the master policyholder or any member enrolled under the scheme can return the policy during this period.|
In addition to availing the benefits provided by the policy, members can also claim tax benefits in accordance with the prevailing laws of the Income Tax Act, 1961.
Enrolling your members/employees under the Group Credit Life Insurance Plan will help you provide financial security to them and their dependents. The risk cover provided by this policy will act as a shield against liabilities and debts that your members might have. LIC is one of the top public-sector life insurance firms in the country, and has been operational for over 6 decades. The insurer has a claim settlement ratio of 98.31% for FY16-17 and a grievances solved ratio of 100% for the same year. The insurer has also been recognised with several awards for their services and product portfolio.