• LIC Group Credit Life Insurance Plan

    Life Insurance
    • Premiums as low as Rs.17/day for sum assured of Rs.1 crore*
    • Claim up to Rs. 1,50,000 deduction under section 80C**
    • Choose between annual and monthly premium payment options

    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.

    Eligibility - Who is LIC’s Group Credit Life Insurance Plan for?

    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

    Sum Assured and Premium Range - What you get and what it costs?

    Sum Assured

    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.

    Plan Coverage - What LIC’s Group Credit Life Insurance Plan covers?

    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.

    Exclusions - What the LIC’s Group Credit Life Insurance Plan doesn’t cover?

    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.

    Other Key Features – Free-Look Period, Surrender Value, etc.

    Surrender Value
    • Group members can surrender their policy at any time during the policy tenure, provided it happens at least 6 months before the end of the policy tenure. The applicable surrender value will then be paid to the policyholder.
    • The master policyholder can surrender the policy at any time during the policy tenure. Individual group members will have the option of continuing the policy as an individual policy, at this time. Post surrendering this scheme, the surrender value for the number of members who are willing to surrender their policies will be paid to the master policyholder.
    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.

    Tax Benefits – How you can save with LIC’s Group Credit Life Insurance Plan?

    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.

    Other Features of LIC

    • Online Loan Application: Policyholders can request for a loan online through LIC’s website. Further, the loan amount and the interest can be paid through the insurer’s website.
    • Policy Status: Policyholders can view information about their policy by logging into the Customer Portal, on the insurer’s website.
    • Customer Care Channels: Policyholders can contact LIC through a range of channels, including their phone helpline service, SMS-based enquiry channel, email ID, etc.
    • Premium Payment Channels: Premiums can be paid both online and offline. Thus, you can pay your premiums via LIC’s website, though franchisees or merchants, and authorised banks. Premiums can also be paid through NACH, Bill Pay, ATMs, and through cash counters at the insurer’s branch.

    Why you should buy the Group Credit Life Insurance Plan from Life Insurance Corporation of India (LIC)?

    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.

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