The Single Premium Group Insurance Plan is a non-participating, non-linked, single premium payment, term insurance policy that is especially catered towards employees of an organisation or members of an affinity/homogenous group.
This policy provides a risk cover on the life of the group member, and offers a death benefit to the nominee in case the member/life assured meets with an untimely death. In addition, tax benefits, in accordance with the prevailing tax laws, can be availed by members/master policyholder/nominee.
Before you purchase an insurance policy, you will have to ensure that you meet the eligibility criteria set by the insurer.
|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|
The minimum amount of money that your nominee is entitled to receive from the insurer is called the sum assured. For the Single Premium Group Insurance Plan, the master policyholder will have to opt an ideal sum assured amount at the time of purchasing the policy.
|Minimum Sum Assured||Rs.5,000|
|Maximum Sum Assured||Rs.10 lakh|
The premium is what a policy buyer pays to the insurer in order to enjoy the benefits that are accorded by the policy.
|Minimum Policy Tenure||2 years|
|Maximum PoIicy Tenure||7 years|
|Premium Payment Mode||Single Premium|
*Premiums vary based on age, location, plan term, GST, and other factors.
|Death Benefit||If a member enrolled under this group scheme passes away while the policy is in force, the sum assured will be paid to the nominee.|
|Maturity Benefit||At the completion of the policy tenure, a maturity benefit or payout will not be provided to the policyholder.|
If a group member passes away within a period of 1 year from the date of being enrolled under the policy, the insurer will pay 80% of the single premium amount to the nominee. No further payouts will be provided to the nominee. For employer-employee groups where participation is compulsory, this suicide clause will not be applicable.
|Loan against Policy||There is no option to avail a loan against this policy.|
|Free-Look Period||Any member enrolled under this policy or the master policyholder can return this policy within a period of 15 days if they are not satisfied with the policy terms and conditions.|
Tax benefits may be availed by individuals covered under the policy, as per the laws governing the Income Tax Act. Since tax laws are subject to change without any prior notice, it is recommended that you consult with a tax advisor from time to time.
Other Features of LIC
The Single Premium Group Insurance Plan is a pure term insurance plan that will help you secure the lives of your employees or members by providing them a comprehensive risk cover against death. With regards to the insurer, LIC or Life Insurance Corporation of India was nationalised in the year 1956. Today, the insurer has around 2,048 computerised offices set-up across the country.
Since the company’s inception, the company has crossed several milestones and has helped in spreading awareness of the importance of insurance, especially to rural parts of the company. The insurer has also reported a high claim settlement ratio over the past few years, thus indicating their effectiveness. The claim settlement ratio for FY16-17 was 98.31%.
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