In India, many reputed financial lenders offer a range of solutions that are efficient and valuable in nature. If you are a financial lender that delights the customer will offerings for setting up a new business, higher education, purchasing a home or expanding a business, it is imperative that you also help your customers insure their loan liability. In case of the borrower’s death, will help the borrower’s family to pay off the outstanding debt.
This is a single premium plan, covering a wide variety of goals, at one-time cost. Loansurance Group Insurance Plan SP is a non-participating, non-linked group insurance plan that offers a range of features like moratorium period and .
Eligibility for Loansurance Group Insurance Plan SP
The eligibility criteria for Loansurance Group Insurance Plan SP is as defined below.
|Group Size||50 members||No limit|
|Entry Age||15 years for education loan 18 years for other loans||65 years|
|Cover Ceasing Age||NA||75 years|
|Premium Payment Term||Single Premium||NA|
|Cover Term||2 years||30 years, including moratorium period|
|Moratorium Period||1 year||7 years|
|Maturity Benefit||Not Applicable|
This scheme is offered only for lenders (who will be master policyholders) regulated by -
Features of Loansurance Group Insurance Plan SP
Given below are some of the features of IDBI Federal life Insurance Plan SP.
|Types of Life Cover||Under Loansurance Group Insurance Plan SP, two types of life plans are offered. Reducing Cover - Under this, the death benefit for the member ceases with time. Level Cover - The death benefit is constant over the cover term of the member and is same as that of initial sum assured.|
|Moratorium Period||For reducing cover option, the policy member can choose a moratorium period from 1 year to 7 years.|
|Covers offered during moratorium period||During moratorium period, the member can opt to cover loan amount and loan amount plus accruals from interest.|
|Death Benefit||The death benefit is paid depending on the benefit schedule irrespective of actual disbursement of loan or actual moratorium period.|
|Cover for more than one plan||Loansurance Group Insurance Plan SP offers joint cover or proportionate cover benefits also.|
|Master Policyholder||A master policyholder may be a financial institution, a lending institution or a bank. Each person insured under this plan in a credit group is issued an individual insurance certificate and will be covered under a master policy.|
Benefits of Loansurance Group Insurance Plan SP
Described below are some of the benefits of Loansurance Group Insurance Plan SP.
|Death Benefit||In the event of death of an insured member, a credit account statement from the lender will be called for. In case there is outstanding loan balance, the death benefit will be paid to the lender to the extent of outstanding loan balance. The death benefit will be applicable when the cover is in force.|
|Maturity Benefits||There is no maturity benefit for both the level cover option and the reducing cover option under this plan.|
|Surrender Option||When the lender surrenders the master policy, the insured members are offered an option to continue the cover. If the insured also wishes to withdraw from the policy, the life cover will cease immediately and the surrender value for the insured member will be paid.|
|Surrender Value||The surrender value is calculated using the following formula.
|Nominations||Nomination facility will be permitted as per provisions of section 39 of Insurance Act, 1938. It will be amended from time to time.|
|Assignment||The benefits offered to each insured member is strictly personal in nature and cannot be assigned.|
|Free Look Period||For the insured member - A free lock period of 15 days from the date of issue of certificate will be provided for review. For the master policyholder - A free look period of 15 days from the date of receipt of master policy is given for review. In case the person does not wish to continue, the same must be returned with a written communication.|
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GST of 18% is applicable on life insurance effective from the 1st of July, 2017