The New One Year Renewable Group Term Assurance Plan II is a non-participating and non-linked annually renewable group term assurance plan that offers life cover to members of a society / employees of an organisation at high competitive premium rates.
The terms and conditions of the policy will determine the amount of cover that can be availed by each member of the group. The sums of premiums paid by each individual member when the policy commences as well as subsequent renewals will be treated as the overall premium.
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 |
Plan Type | Non-participating and non-linked term insurance plan |
Plan Basis | Group |
Sum Assured | Minimum: Rs.1000 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 or semi-annual 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 |
Profit Sharing | LIC's New One Year Renewable Group Term Assurance Plan II policy is eligible for profit sharing. The calculation of profits will be determined by the premium payments made towards the policy minus overall claims made during the tenure and deducting contingency reserves and expenses, losses carried forward, if any, and adjusted for credibility of experience. While losses will be carried forward to the following year, profits will be shared based on the size of the group against the following renewal premium. |
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 II 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 |
Semi-annually | 0.5108 |
Quarterly | 0.2582 |
Monthly | 0.0867 |
The New One Year Renewable Group Term Assurance Plan II 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 under this policy also qualify for profit sharing, and the profits will be determined by the premium payments made towards the policy minus overall claims made during the tenure and deducting contingency reserves and expenses, losses carried forward, if any, and adjusted for credibility of experience. Members will also be able to claim tax benefits on the premiums paid towards this scheme.
GST of 18% is applicable on life insurance effective from the 1st of July, 2017
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