It’s a known fact that LIC is the biggest and most trusted insurance company in India. The company works with a customer-centric approach and provides the one-stop solution for all types of insurance needs.
To meet the high-end requirements of the insurance seekers, LIC has come up with group insurance policies. These group schemes are offered to the communities of people and are ideal for employers, societies, associations, etc.
The prime objective of group insurance policies is to offer coverage at lesser premiums to people who are unable to afford individual life cover.
For the convenience and knowledge of our policy buyers, here we have briefly discussed various group insurance policies offered by Life Insurance Corporation of India.
1. LIC Group Credit Life Insurance
This group term insurance plan is a non-participating, non-linked single premium paying plan. Along with the death benefit offered to group members during the tenure of the policy, the plan also offers many more additional benefits like:
- In the unfortunate event of the demise of a policyholder, the death benefit is paid to the beneficiary.
- The coverage of insurance depends on the loan amount, moratorium period and rate of interest, sum assured for the members, and the nature of the loan.
- The policy features a minimum entry age of 18 years and the maximum entry age of 60 years.
- Rs. 4 lakhs is the minimum sum assured provided by the policy and there is no limit of the maximum sum assured.
- The tenure of the policy ranges from 5 to35 years.
- Under LIC Group Credit Life Insurance plan, a minimum of 50 members can be enrolled.
- Prevailing tax benefits are applicable.
2. LIC Single Premium Group insurance:-
This is an ideal plan for employers to cover their employees. As a single premium paying, non-participating group term insurance plan, it offers coverage against the death of any of the group members. Moreover, know more about the features and benefits of the plan here:
- The beneficiary receives the sum assured as the death benefit, in the event of the demise of the insured.
- The eligibility criteria of the policy include the minimum 18 years of entry age to the maximum of 60 years.
- Minimum Rs. 5,000 to maximum Rs. 10 lakhs is provided as the sum assured by the policy.
- The policy offers an option of single premium payment.
- The insured can also avail tax benefits.
3. LIC New Group Leave Encashment Plan:-
This plan provides life cover benefits and is a non-participating fund-based variable insurance plan. The benefits offered by this plan are as follows:
- Like any other group insurance plan, this plan also provides a death benefit against the demise of the policyholder.
- The liabilities can be met by employers to provide the leave encashment facility to their staff members.
- If the policyholder retires or leaves the service, then the benefits of the policy are payable to that employee.
- The policy can be renewed annually.
- The eligibility criteria of the policy include the minimum entry age of 18 years and the maximum entry age of 75 years.
- Although the existing scheme does not provide any restrictions in terms of group size, a minimum of 10 members should be there in the group.
4. LIC New Group Superannuation Cash Accumulation Plan
This Group Superannuation plan is ideal for the trusts. As a comprehensive plan, it has many features and benefits.
- The insured can renew the policy online
- At any point of time, the master policyholder can surrender the policy
- The policy offers the minimum entry age of 18 years and the maximum entry age of 75 years.
5. LIC New Group Gratuity Cash Accumulation Plan:-
This is a non-linked, non-participating plan that helps employers to meet the obligations to provide gratuity benefits to their employees. Some of the additional benefits that can be availed under this plan are:
- If the member is in service, then the death benefit is payable to the beneficiary.
- The plan also offers retirement benefits and in case he/she leaves the service.
- The master policyholder can surrender the policy anytime after giving a 3 months’ notice.
- The minimum sum assured of the policy is Rs. 1000 and there is no specified limit of the maximum sum assured.
- According to the suitability of the policyholder, it can be renewed annually.
In today’s time, most of the group insurance schemes offered by various insurers are covered under Employee Provident Fund Organization (EPFO), which mandate the employers to provide insurance to the employees under Miscellaneous Provision Act, 1952. Thus, opting for a group insurance scheme is fruitful for employers and employees.