The New One Year Renewable Group Term Assurance Plan- I by LIC is, as the name suggests, a group term insurance plan that can be renewed each year. It is a non-participating and non-linked plan that offers life cover to employees and members of a group.
The insurer lays out certain criteria that should be met by the members of the group, in order to be eligible to avail the risk cover provided by this scheme.
|Minimum entry age||8 years|
|Maximum entry age||75 years|
|Maximum age at renewal||80 years|
|Minimum group size for employer-employee group||25|
|Minimum group size for non-employer-employee group||50|
The lump sum amount payable to the beneficiaries upon the death of the policyholder is called the sum assured.
|Minimum sum assured||Rs.1,000|
|Maximum sum assured||No limit|
The nominal amount paid at certain regular intervals as specified by the insurer is called the premium.
|Premium payment mode||
*Premiums vary based on age, location, plan term and other factors
|Death Benefit||In case of death of a member who is enrolled under this policy, a lump sum benefit equal to the sum assured will be paid.|
Only 80% of the premium paid will be payable to a member whose cause of death is suicide if it occurred within 12 months from the date of receipt of the policy or date of entry into the scheme. However, this clause will not be applicable to employer-employee groups where participation is mandatory.
|Revival of Policy||If a policy has lapsed, it can be revived within a period of 3 months. The 3-month period starts from the next annual renewal date or the date of first unpaid premium. The policy can be revived on payment of unpaid premiums along with the interest. The interest is compounded half-yearly based on the rates prevailing at the time of revival.|
|Waiting Period||Only non-employer-employee groups have a waiting period of 45 days starting from the date of receipt of the policy. The death benefit will not be payable during this period.|
|Cooling off Period||Policyholders have the option of returning policies within the first 15 days of the policy. On returning the policy, the insurance company will return the premiums paid after deduction of the stamp duty and charges incurred towards risk premium.|
|Group Schemes||LIC has many group schemes along with the New One Year Renewable Group Term Assurance Plan- I like the New Group Leave Encashment Plan, Group Credit Life Insurance Plan, etc. A social security scheme named Aam Admi Yojana is also available.|
|Online Policy Status||Following a few simple steps to register online will allow policyholders to view the policy status on the LIC website.|
|Phone Helpline||In case of any queries with regard to the life insurance policy, customers have the option of contacting the nearest customer zone to resolve their queries.|
LIC has always topped the list of insurers in terms of claim settlement and grievance settlement. In the year 2016-17, LIC had a claim settlement ratio of 98.31% and grievance settlement ratio of 100%. It is hence one of the most preferred insurers in the country. The insurer has also been bestowed with several awards over the last few years.