The Life Insurance Corporation of India (LIC) introduced a new insurance product called the Single Premium Group Micro Term Insurance Plan on October 7.
This is a non-participating, non-linked, group insurance plan specifically designed to meet the life insurance needs of various groups, offering simple, flexible, and affordable coverage.
Features of the Plan
- Target Audience: This plan is aimed at financial institutions, microfinance entities, co-operative societies, self-help groups, NGOs, and employer-employee groups. It also covers unorganized sectors, offering essential life insurance protection.
- Affordable Coverage: The plan is particularly beneficial for underserved sections of society who still lack life insurance. It offers cost-effective coverage at a nominal price, addressing a large population that needs insurance.
- Credit Protection: For financial institutions, the plan provides customized credit protection for their customers. In case of the policyholder’s death, the insurance covers the outstanding loan amount, protecting the family from the burden of repayment.
Special Features of the Plan
Eligibility: The plan covers groups with 50 or more members.
Sum Insured: Members can get a risk cover sum insured ranging from ₹5,000 to ₹2,00,000.
Premium Payment: This is a single premium plan, payable in a lump sum.
Flexible Coverage Period: The cover period can range from 1 month to 10 years, depending on the group’s preference.
Joint Life Cover: Available for spouses in the lender-borrower relationship.
Ease of Access: Insurance can be availed easily without the need for any medical test.
This plan offers a much-needed solution to provide life insurance to underinsured groups, ensuring that families are financially protected in the event of the policyholder’s untimely death.
Target Audience and Benefits
This plan specifically caters to the needs of financial institutions and unorganized groups, providing customized credit protection for their customers.
In case of the unfortunate death of a family member who is the breadwinner, the plan helps prevent the financial burden of loan repayment, offering peace of mind at an affordable cost.
By offering affordable life insurance options, LIC aims to extend coverage to a segment of the population that often lacks access to such financial protection, thus promoting financial inclusion across India.
