This group scheme is a non-supporting and non-linked plan that helps employers provide gratuity benefits to the employees. Being a fund based variable insurance plan, it also offers a life cover to the employees. In case of an unfortunate death of an employee, an amount equal to the sum assured as specified by the scheme is payable to the beneficiary.
Certain eligibility parameters are laid out by the insurance company for customers who wish to purchase this plan.
|Minimum entry age||18 years|
|Maximum entry age||75 years|
|Maximum age at renewal||80 years|
|Minimum group size for existing scheme||No restriction|
|Minimum group size for new scheme||10|
|Maximum group size||No restriction|
The total sum payable on the death of a member of the plan is termed the sum assured.
|Minimum sum assured||Rs.1,000|
|Maximum sum assured||No restriction|
The amount contributed by the employer to offer life cover and gratuity benefits to their employees is called the contribution.
|Minimum contribution||Rs.10,000 at the time of inception|
|Maximum contribution||No limit|
|Policy term||Annually renewable|
*Premiums vary based on age, location, plan term and other factors
|Death benefit||In case of death of a member while he/she was in service, the beneficiary can claim the sum assured and the gratuity benefit as per the scheme.|
|Retirement/Leaving service benefit||In case a member retires or leaves his/her service before retirement, he/she will be paid gratuity benefit as specified in the scheme.|
|Surrender Benefit||If the policyholder chooses to terminate the policy before the completion of the term, he/she can claim the surrender benefit. The benefit payable is called the guaranteed surrender value. The insurance company may pay a special surrender value too. The guaranteed surrender value is 90% of the total contribution and the special surrender value is equal to the policy account value. Either the guaranteed surrender value or the special surrender value, whichever is higher, will be paid to the policyholder. Deductions may be applicable on the surrender value.|
|Cooling-off Period||The policyholder is given 15 days to review the policy, starting from the date of inception of the policy. If he/she is not satisfied with the terms of the policy, he/she can return the policy after stating the reason behind the same. The premiums paid will be returned by the insurer after deductions of stamp duty expenses and mortality charges.|
|Group Schemes||Various group schemes like the Group Credit Life Insurance are offered by LIC. LIC also has a special social security scheme named Aam Admi Yojana.|
|Phone Helpline||LIC has a phone helpline service that can be utilised in case of any queries regarding the life insurance policy.|
|Premium Calculator||A simple system to calculate the premium payable for each policy is made available to the policyholders on the LIC official website.|
|Online Application||Individuals who wish to buy a policy from LIC can submit an application online to receive assistance for the same.|
LIC has had a long-standing reputation for providing the best customer care. With over 2,000 branches across the country, the services can be accessed easily. The insurer had a claim settlement ratio of 98.31% for the financial year 2016-17. It is hence one of the most preferred insurance companies in the country