There are people who depend on us, as a provider and protector of the family. It is important that we plan ahead so that we do not let them down, even in our absence. This is where life insurance policies come into play. A can be an exceptional support for your family in the unfortunate event of your death. However, there are so many companies in the market which offer many different kinds of insurances. It is important that you make the decision after much research and deliberation.
The is an exceptional plan that is aimed at covering groups. The key feature of this policy is that it is affordable making it one of the best options out there for Self Help Groups, Micro Finance Institutions and NGOs. Buy purchasing this IDBI Federal life Groups policy, the company can easily insure the lives of their group members and thus provide security to the group members’ families. What’s more, this plan can also be used for providing loan protection to the group members’ families.
Eligibility for Group Microsurance Plan:
|Sum Insured||Minimum||Rs. 5000|
|Age at entry||Minimum||18 years|
|Maturity age||Maximum||65 years|
|Member Benefit Term||Fixed||5 years only|
|Minimum number of members||20|
|Nature of group||The group must consist of members brought together by a common economic purpose.|
|Eligibility||Eligibility must be tied to a well-defined event such as commencement of employment or date of loan sanction.|
|Term||The group policy is issued for an indefinite term.|
Key Features of Group Microsurance Plan:
|Premium rate applicable||The premium rate applicable for all group members will be arrived at by using an average rate (unit rate) applicable to all members irrespective of their ages.|
|Premium payment frequency||Annually, half yearly, quarterly or monthly.|
|Maximum premium payable||Maximum premium payable for an individual member is Rs. 750 annually, irrespective of the member’s age.|
|Payment of Premium||It is the group policyholder’s responsibility to make sure that all member premiums are paid.|
|Affordable Protection||Life insurance cover to group members at affordable cost.|
|Wider Coverage||Members between the ages of 18 and 60 years can be covered under this policy. Sum insured can be between Rs. 5,000 and Rs. 50,000 per member.|
|Automatic Acceptance||Automatic acceptance of cover without any evidence of health needed if the group has more than 200 members. Medical reports are not required even up to the maximum sum insured of Rs. 50,000.|
|Grace Period||15 days for monthly mode. 30 days for quarterly mode, half yearly mode and annual mode. If the premium is not paid within the grace period, the cover will lapse.|
|Reinstatement||The revival period is 3 months.|
|Exclusions||There are no exclusion for death benefit|
|Nomination||Each member can nominate a person/persons to whom the death benefit will be payable.|
|Surrender and Paid up Value||There is no Paid up and Surrender Value with this policy.|
|Loan||There is no loan facility with this policy.|
|Service Tax||Service Tax and cess as imposed by the Government from time to time will be charged on the premium.|
Benefits of Group Microsurance Plan:
Death Benefit: If during the term of the cover, a group member passes away, the sum insured will be payable. This is under the condition that all premiums due have been paid.
Decreasing cover option: Sum insured based on average loan balance over the year subject to limits mentioned. The policyholder may select the decreasing cover option or the level cover option, but not both.
Level cover option: Sum insured as chosen at the outset subject to limits mentioned.
Expense related discounts apply for large schemes:
|Estimated annual premium||Discount as % of premium|
|Less than Rs. 2,50,000||Nil|
|Rs. 2,50,000 to Rs. 4,99,999||2%|
|Rs. 5,00,000 to Rs. 9,99,999||4%|
|Rs. 10,00,000 and more||6%|
Accidental death benefit rider may subsequently be added to this product. This is subject to IRDA approval of the accidental death benefit rider.
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GST of 18% is applicable on life insurance effective from the 1st of July, 2017