LIC’s Group Credit Life Insurance is a term insurance plan that provides the benefit of insurance cover in the unfortunate event of the death of one of the members in the group during the time of the duration of the insurance policy. It is a plan based on the payment of a single premium amount and is a non-linked insurance policy.
Eligibility Conditions For LIC’s Group Credit Life Insurance
|Minimum Entry Age||18 years|
|Maximum Entry Age||60 years|
|Maximum Age At Maturity||65 years|
Key Features Of LIC’s Group Credit Life Insurance
Mentioned below are some of the salient features of LIC’s Group Credit Life Insurance
|Plan Type||Non-linked and non-participating single premium group term insurance plan|
|Plan Basis||Group (Minimum 50 members)|
|Policy Term||5 to 35 years|
|Premium Payment Mode||Single premium only|
|Maturity Benefits||Should the group members survive till the expiration of the term of the policy, no maturity benefits shall be payable|
|Premium Payment Frequency||One time payment at the start of the policy|
|Minimum Sum Assured||Rs 400,000|
|Maximum Sum Assured||No Limit|
|Death Benefits||Should a member of the group unfortunately meet his or her demise during the duration of the policy, a sum assured equivalent to the cover of risk taken out by that member shall be payable|
|Loan Facility||No loan facility can be availed on this policy|
|Free Look Period||In case the main policyholder or any member is dissatisfied with the rules and regulations as stipulated by the policy, then he or she can return the policy within 15 days after receiving the policy document, along with the reasons for rejection. Following this the company will nullify the policy and return the premium amount paid after any proportional deductions are made.|
|Taxes||Tax payable will be as per existing tax laws and existing tax rates applicable at that time|
Benefits and Advantages of LIC’s Group Credit Life Insurance
LIC’s Group Credit Life Insurance provides policyholders with the following important advantages or benefits:
- Surrender Value: A member is allowed to surrender his or her insurance cover at any time he or she so chooses following the introduction of the individual into the insurance policy. However, this can only happen 6 months before the policy term ends and if the loan is paid up in full.
In the case of the main or master policyholder, the policy can be surrendered at any time of his or her choosing following the date of the policy’s commencement.
- Exclusion: Should a member of the group commit suicide, 80% of the premium paid shall be payable within one year from the date of the entry of the expired member into the policy
How LIC’s Group Credit Life Insurance Works
LIC’s Group Credit Life Insurance can be purchased by a group consisting of a minimum of 50 members. The insurance policy is held by a master policyholder and subsequent members are added to the policy. The insurance premium is paid at the commencement of the policy in one single payment, which is valid for the entire duration of the LIC policy term. Should the main policyholder or any member passes away during the duration of the policy, then the sum assured amount equal to their contribution to the policy shall become payable.
LIC Group Plan does not come with any additional riders or add-ons.