Good news for LIC’s policy holders. The Life Insurance Corporation of India (LIC), the country’s largest insurance company, has recently launched the ‘Single Premium Group Micro Term Insurance Plan’, which has become effective from October 7, 2024. The product is crafted as a straightforward, non-participating, non-linked group pure risk insurance option, aimed at delivering cost-effective and adaptable life insurance for various financial and social organizations.
Who stands to gain?
This plan is tailored for financial entities like Micro Finance Institutions (MFIs), Cooperatives, Self-Help Groups (SHGs), and Non-Governmental Organizations (NGOs). Its main goal is to provide coverage for their members or borrowers. Additionally, it extends its services to members of informal groups, employer-employee setups, and other types of collectives. If an insured member passes away, the plan helps ease the financial strain on families by covering any outstanding loans.
Key Features of the Plan
This policy is open to groups with a minimum of 50 members, making it suitable for larger social and financial organizations.
The coverage amount ranges from Rs 5,000 to Rs 2 lakh.
Premiums are paid upfront at the start of the policy term.
Policyholders can select a coverage period from 1 month to 10 years.
In cases involving lenders and borrowers, the plan provides joint life coverage, allowing spouses to be included under one policy.
The application process is hassle-free, as it doesn’t require any medical exams, simplifying things for policyholders.
This plan is perfect for financial institutions looking to offer tailored credit protection to their clients. Moreover, it’s a great option for members of informal groups and employer-employee teams seeking affordable life insurance.
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