The Life Insurance Corporation of India (LIC) has introduced a new product called the Single Premium Group Micro Term Insurance Plan, starting from 07 October.
This insurance plan is a non-participating, non-linked, group, pure risk micro life insurance product. It is designed to offer simple, flexible, and affordable life insurance options.
Target Audience and Benefits
This plan aims to help financial institutions like microfinance organizations, co-operative societies, self-help groups, and NGOs by providing coverage for their members.
It also meets the insurance needs of unorganised groups, employer-employee groups, and other affinity groups.
In India, this product has the potential to offer affordable life insurance solutions to many people who do not yet have insurance.
It can help protect families from the burden of repaying outstanding loans if the main earner passes away, providing customized credit protection to customers of financial institutions.
Key Features of the Scheme
Group Size: The plan is available for groups with 50 or more members.
Coverage Amount: Members can get a risk cover sum insured ranging from Rs 5,000 to Rs 2,00,000.
Premium Payment: A single premium is paid as a lump sum.
Flexible Coverage Period: The cover period can be chosen from 1 month to 10 years.
Joint Life Cover: Spouses can also be covered under a lender-borrower relationship.
Easy Enrollment: No medical tests are required, making it easy to obtain insurance.
