The New One Year Renewable Group Term Assurance Plan from Life Insurance Corporation of India is a non-participating and non-linked annually renewable group term insurance policy that offers life cover to members of a kindred / employees of an organisation at competitive premium rates. The terms and conditions of the scheme will determine the extent of life cover that can be availed by each member of the group. The sum of premiums paid by each individual member at the time of commencement of the policy as well as subsequent renewals will be considered as the total premium.
Eligibility Criteria for LIC’s New One Year Renewable Group Term Assurance Plan I
|Minimum Entry Age||8 years (completed)|
|Maximum Entry Age||75 years (nearest birthday)|
|Maximum Age at Maturity||80 years (nearest birthday)|
|Minimum Group Size (Employer-Employee Group)||25|
|Minimum Group Size (Non Employer-Employee Group)||50|
Key Features of LIC’s New One Year Renewable Group Term Assurance Plan I
|Plan Type||Non-participating and non-linked term insurance plan|
Maximum: No Limit
|Premium Payment Frequency||Monthly, Quarterly, Semi-annually, Annually|
|Policy Term||Annually Renewable|
|Lock-in Period||There is no waiting period for employer-employee groups, but non-employer-employee groups will be subject to a waiting period of 45 days from the date on which the policy commences. No death benefit can be claimed during the lock-in period.|
|Grace Period for Payment of Premium||Customers who have set their premium payment frequency to quarterly, semi-annual or annual modes will receive a 30-day grace period commencing from the date on which the premium payment was due. Customers who have chosen to make premium payments on a monthly basis will receive a grace period of 15 days, and if premium payments are not made within the grace period, the company shall consider the policy as lapsed, resulting in no payout in case of the death of a member. In case of death during the grace period, deductions relating to due and unpaid premium will apply and the sum assured will then be paid out.|
|Surrender Value||Policies under LIC’s New One Year Renewable Group Term Assurance Plan I will not acquire any paid-up value or surrender value|
|Reviewability of Premium||The past mortality experience of the plan will determine whether the premium rates will increase or decrease on the Annual Renewal Date.|
|Revival of Policy||In case of a lapse of a policy, customers can revive it on the following Annual Renewal Date or within three months from the date on which the first unpaid premium was recorded, whichever is earlier. The acceptance or declination of a request to revive a discontinued policy will be determined by the LIC of India, and the revival will be officially under effect only after the company has particularly communicated the same information to the policyholder.|
Premium payments under LIC’s New One Year Renewable Group Term Assurance Plan I can be made in either monthly, quarterly, semi-annual or annual instalments. In case a member joins after the inception of the policy, the policyholder will be required to make a premium payment equivalent to the amount of premium depending upon the annual premium for the unexpired period for that particular member. In case the premium payment frequency is set at monthly, quarterly or semi-annual basis, the corresponding premium per annum will be multiplied by the below-displayed factor to determine the conforming instalment premium:
|Mode of Payment||Factor|
Benefits and Added Features of LIC’s New One Year Renewable Group Term Assurance Plan I
- LIC Group Schemes Plan guarantees financial safety for the family of a group member at highly competitive premium rates.
- Premium rates will be determined by the risk profile and size of the group.
- No loan is sanctioned under this policy.
- In case of a member’s death due to suicide, the payout in respect of that particular member will be 80% of the sum assured. This payment can be claimed within 12 months of the member’s entry into the policy or the date on which the policy commenced, whichever comes later. However, employer-employee groups that require mandatory participation cannot avail this benefit.
- A cooling-off period of 15 days is granted to customers so that they can return the policy if they are not happy with the terms and conditions. The reasons for termination of the policy must be stated in writing and submitted to the Corporation which will then return the money deposited as premium after deducting a sum to recover stamp duty fees and the equivalent fees towards risk premium.
How This Plan Works
The New One Year Renewable Group Term Assurance Plan I by Life Insurance Corporation of India can be availed by employer-employee groups with at least 25 members and non-employer-employee groups with a minimum of 50 members. Premium payments can be made on a monthly, quarterly, semi-annual or annual basis depending upon the preference of the policyholder. In case of death of a member, a lump sum (sum assured) will be paid out. Members will also be able to claim tax benefits on the premiums paid towards this scheme.
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GST of 18% is applicable on life insurance effective from the 1st of July, 2017