LIC Group Plans

• 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 largest insurer in the country has rolled out the LIC group plans that would be beneficial to members of an organisation. The LIC group plans offers members of an organisation financial security to their family in their absence. In case of untimely death of the group member, a lump sum payout of the sum assured will paid to the nominee or dependents of the insured group member.

Features and benefits of the LIC group plans

• The LIC group plans offers group members with financial security for their families in case of untimely death.
• The LIC group plans are offered at affordable premiums.
• Group members can be enrolled in any of the LIC group plans just by filling out a simple registration form.
• Faster claim settlement process.

List of Group Plans offered by LIC

LIC has rolled out seven group plans members of organisations. They are listed as follows:

LIC Group Credit Life Insurance

The LIC Group Credit Life Insurance is a non-participating, non-linked insurance plan that offers life coverage to the dependents or nominee of the group member in case of untimely death. The sum assured that is payable to the nominee of the deceased group member depends on the loan liability, the interest rate of the loan or the nature of the loan.

Features and benefits of the LIC Group Credit Life Insurance:

• For the LIC Group Credit Life Insurance the minimum entry age is 18 years while the maximum is 60 years.
• The maximum maturity age is 65 years.
• Group members are guaranteed a minimum sum assured of Rs.4 lakh while there is no limit on the sum assured.
• The policy term for the LIC Group Credit Life Insurance is between 5 years to 35 years.
• The minimum group size for the LIC Group Credit Life Insurance is 50 members.
• In case of untimely death of the policyholder, the nominee is entitled to the sum assured depending on the risk cover at that point as the death benefit of the LIC Group Credit Life Insurance.
• The surrender value of the policy will be payable to the policyholder 6 months prior to the end of the policy.
• Policy group members are entitled to tax benefits under Section 80D and Section 10 (10D) of the Income Tax Act, 1961.
• Policyholders are granted a free-look period of 15 days from the commencement of the policy. If he/she disagrees with the terms and conditions of the policy, the policy can be returned and a refund for the premium paid will be made.
• If a group member commits suicide within 12 months from the commencement of the policy, no benefits shall be payable. 80% of the premium paid will be payable to the nominee in this case.

LIC Single Premium Group Insurance

This non-linked, non-participating group insurance plan rolled out by LIC offers group members with life coverage just by making a single premium contribution. In case of untimely death of the group member, the nominee will be entitled to the sum assured to cover liabilities.

Features and benefits of the LIC Single Premium Group Insurance:

• For the LIC Single Premium Group Insurance the minimum entry age is 18 years while the maximum is 60 years.
• The maximum maturity age is 65 years.
• Group members are guaranteed a minimum sum assured of Rs.5,000 while the maximum sum assured is Rs.10 lakh.
• The policy term for the LIC Single Premium Group Insurance is between 2 to 7 years.
• The minimum group size for the LIC Single Premium Group Insurance is 50 members.
• In case of untimely death of the policyholder, the nominee is entitled to the sum assured as the death benefit of the LIC Group Credit Life Insurance.
• The surrender value of the policy will be payable to the policyholder 6 months prior to the end of the policy.
• Policy group members are entitled to tax benefits under Section 80D and Section 10 (10D) of the Income Tax Act, 1961.
• If a group member commits suicide within 12 months from the commencement of the policy, no benefits shall be payable, only 80% of the premium paid will be payable to the nominee.
• Policyholders are granted a free-look period of 15 days from the commencement of the policy. If he/she disagrees with the terms and conditions of the policy, the policy can be returned.

LIC Group Leave Encashment Scheme

This LIC group policy offers customers with the benefit of leave encashment as well as life coverage for the family members of the group member in case of untimely death.

Features and benefits of the LIC Group Leave Encashment Scheme:

• Group members have to make contributions of a minimum of Rs.10,000 towards the life coverage and leave encashment annually. There is no maximum contribution one can make.
• Benefits will be payable on retirement and death of the group member.
• The mortality charge is deducted from the policy fund value.
• The minimum entry age for the LIC Group Leave Encashment Scheme is 18 years and the maximum is 75 years.
• The maturity age of the LIC Group Leave Encashment Scheme is 80 years.
• The minimum group size for the LIC Group Leave Encashment Scheme is 10 members.
• The minimum sum assured is Rs.1,000 while there is no maximum amount.
• If the policyholder surrenders the policy within three years from commencement, he/she will be charged 0.5% of the policy value subject to a maximum of Rs.5 lakh. If he/she surrenders the policy after three years, he/she is entitled to the surrender value - which is 90% of the contributions made till that point.
• Policyholders are granted a free-look period of 15 days from the commencement of the policy. If he/she disagrees with the terms and conditions of the policy, the policy can be returned by the policyholder and he/she will be entitled to a refund of the premium paid till that point.

LIC Group Superannuation Cash Accumulation Plan

With the LIC Group Superannuation Cash Accumulation Plan, group members can choose a defined contribution in order to get a definite benefit post retirement. Here, group members can make their contribution towards the superannuation scheme any time of the year and can nominate a beneficiary in case of untimely death.

Features and benefits of the LIC Group Superannuation Cash Accumulation Plan:

• The minimum entry age for the LIC Group Superannuation Cash Accumulation Plan is 18 years and the maximum is 75 years.
• The maturity age of the LIC Group Superannuation Cash Accumulation Plan is 85 years.
• The definite contributions made by the group members are subject to additional interest and residual interest added on the policy value.
• Policyholders can surrender the policy by giving a three month notice to the insurer. The policyholder is entitled to 90% of the fund value as the surrender value.
• The minimum group size for the LIC Group Superannuation Cash Accumulation Plan is 10 members.
• The policy can be renewed annually.
• Policyholders are granted a free-look period of 15 days from the commencement of the policy.

LIC New One Year Renewable Group Term Assurance Plan I

The LIC New One Year Renewable Group Term Assurance Plan is a non-participation yearly renewable plan that offers life coverage to the dependants of the group members in case of untimely death. The premium of the LIC New One Year Renewable Group Term Assurance Plan depends on the risk profile and the size of the group.

Features and benefits of the LIC New One Year Renewable Group Term Assurance Plan:

• The minimum entry age for the LIC New One Year Renewable Group Term Assurance Plan is 18 years and the maximum is 75 years.
• The maturity age of the LIC New One Year Renewable Group Term Assurance Plan is 85 years.
• A lump sum of the sum assured is paid to the nominee of the group member in case of untimely and unfortunate death.
• The minimum sum assured of the LIC New One Year Renewable Group Term Assurance Plan is Rs.1,000 while there is no maximum sum assured.
• Group members can pay the premiums either half-yearly, quarterly or monthly.
• Policyholders are granted a grace period of 30 days for the half-yearly and quarterly premium mode and 15 days for the monthly premium mode to pay their premiums.
• Policyholders can revive the policy within three months for the first unpaid premium.
• The LIC New One Year Renewable Group Term Assurance Plan has a waiting period of 45 days from the commencement of the policy. No benefits are payable during the waiting period.
• If a group member commits suicide within 12 months from the commencement of the policy, no benefits shall be payable, only 80% of the premium paid will be payable to the nominee.
• Policyholders are granted a free-look period of 15 days from the commencement of the policy. The policyholder can return the policy if he/she disagrees with the terms and conditions of the policy.

LIC New One Year Renewable Group Term Assurance Plan II

The LIC New One Year Renewable Group Term Assurance Plan II also offers group members with the benefit of life coverage with affordable premiums. In case of untimely death of the policyholder, the LIC New One Year Renewable Group Term Assurance Plan II pays a lump sum benefit of the sum assured to the nominee of the group member.

• The minimum sum assured of the LIC New One Year Renewable Group Term Assurance Plan II is Rs.1,000 while there is no maximum sum assured.
• The minimum entry age for the LIC New One Year Renewable Group Term Assurance Plan II is 18 years and the maximum is 75 years.
• The maturity age of the LIC New One Year Renewable Group Term Assurance Plan II is 85 years.
• A lump sum of the sum assured is paid to the nominee of the group member in case of untimely and unfortunate death.
• Group members can pay the premiums either half-yearly, quarterly or monthly.
• Policyholders are granted a grace period of 30 days for the half-yearly and quarterly premium mode and 15 days for the monthly premium mode to pay their premiums.
• Policyholders are granted a free-look period of 15 days from the commencement of the policy. The policyholder can return the policy if he/she disagrees with the terms and conditions of the policy.
• Policyholders can revive the policy within three months from the first unpaid premium.
• The LIC New One Year Renewable Group Term Assurance Plan II has a waiting period of 45 days from the commencement of the policy. No benefits are payable during the waiting period.
• If a group member commits suicide within 12 months from the commencement of the policy, only 80% of the premium paid will be payable to the nominee. No other benefits are applicable in this case.

LIC New Group Gratuity Cash Accumulation Plan

The LIC New Group Gratuity Cash Accumulation Plan offers help to employer to meet the obligatory gratuity needs of his/her employees as well as offers life coverage to the employees or group members in case of untimely death. A lump sum of the sum assured is paid to the nominee of the group member in case of untimely and unfortunate death.

Features and benefits of the LIC New Group Gratuity Cash Accumulation Plan:

• The policyholder has to make annual contributions towards the gratuity benefits of his/her employees as well as the life coverage.
• The minimum contribution for the year towards the gratuity benefit and life coverage is Rs.10,000. There is no limit to how much one can contribute towards the LIC New Group Gratuity Cash Accumulation Plan.
• Contributions made towards the policy fund have the benefit of additional interest added year-on-year and residual additions.
• The minimum entry age for the LIC New Group Gratuity Cash Accumulation Plan is 18 years and the maximum is 75 years.
• The maturity age of the LIC New Group Gratuity Cash Accumulation Plan is 80 years.
• In case of untimely death of the group member, the life coverage is paid to the nominee as well as the gratuity benefit.
• The minimum sum assured is Rs.1,000. There is no limit on the sum assured.
• For the LIC New Group Gratuity Cash Accumulation Plan, the minimum group size should be of 10 members.
• Policyholders can surrender the policy by giving a three month notice to the insurer. The policyholder is entitled to 90% of the fund value as the surrender value.
• Policyholders are granted a free-look period of 15 days from the commencement of the policy. The policyholder can return the policy if he/she disagrees with the terms and conditions of the policy.

Why one needs the LIC Group Plans?

The LIC group plans offers employees from organisations with the benefit of life coverage that would help cover the liabilities in case of their absence. All the LIC group plan products offer a lump sum coverage to the nominee of the group member in case of untimely or unfortunate death, giving them financial security when they need it the most. Considering that most employees will be availing a life insurance policy for the first time through their company, these group plans come with the benefit of affordable premiums.

A state-owned insurance group, LIC is currently the largest insurer in the country with an asset value of $240 billion. Adding to their reputation in the country, in the financial year of 2016-2017, LIC recorded a claim settlement ratio of 98. 19% - the highest till date by a margin. LIC sets themselves apart from other insurers by having a dedicated customer support team that works round-the-clock and holds customer satisfaction as their priority.