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  • LIC New Group Leave Encashment 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 Leave Encashment Scheme is a non-participating plan that helps employers encash leaves for the employees. This fund-based variable plan also offers a life cover for members of the scheme. Hence, in case of death of any of the employees, the sum assured for that particular member of the policy will be paid to the nominee.

    Eligibility

    The insurer lists out certain criteria that should be met for the scheme to be purchased.

    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

    Sum Assured and Contribution

    Sum Assured

    The sum assured is the total amount that is payable on the death of a member under the group scheme.

    Minimum sum assured Rs.1,000
    Maximum sum assured No restriction

    Contribution

    The ‘Contribution’ refers to the amount contributed by the employer to secure the life cover and leave encashment benefits.

    Minimum contribution Rs.10,000 at the time of inception
    Maximum contribution No limit
    Policy term Annually renewable

    Plan Coverage - What the Group Leave Encashment Scheme covers

    Death benefit In case a member enrolled under the policy dies while in service, the sum assured along with the leave encashment benefit are paid to the nominee. The leave encashment benefit is determined based on the scheme rules. However, the benefit payable is limited to the remaining policy account value in the policy account.
    Retirement/Leaving service benefit On retirement of a member, who is enrolled under the policy, the leave encashment benefit is provided as per the scheme rules. The benefit is limited to the policy account value remaining in the account.

    Other Key Features

    Cooling off period The first 15 days of the policy are provided to the grantees as the cooling off period. In case the grantees are not satisfied with the terms and conditions, the policy can be returned to the insurer. The amounts received are then refunded after the deduction of stamp duty charges and proportionate mortality charges.
    Surrender benefit The policy can be terminated before the completion of the term and a surrender benefit is payable. The guaranteed surrender value is 90% of the total contribution minus the mortality charges, policy administration charges and the benefits paid. Whereas the special surrender value is as much as the policy account value minus the applicable surrender charges and any market value adjustment. The higher amount, either the guaranteed surrender value or the special surrender value, will be provided.

    Other Benefits

    Range of policies Apart from group plans, many individual plans, micro insurance plans, pension plans, unit plans, etc. are available.
    Phone services In case of any queries or assistance, customers can contact the nearest customer service. There is also an SMS service that can be utilised to seek help regarding the policies.

    Why you should buy the Group Leave Encashment Scheme from LIC?

    LIC renders the best customer service, and has branches scattered throughout the country to make their services more accessible. The claim settlement ratio helps people decide which insurer to choose and LIC has always maintained an excellent claim settlement ratio over the years. The claim settlement ratio for the year 2016-17 was 98.31% and 100% of the complaints were resolved in the same year. Hence it is no surprise that the company won 29 awards in the year 2015-16 and 27 awards in the year 2016-17.