INSTRUMENTAL IN ENSURING PROSPERITY
LIC’S GROUP TERM INSURANCE SCHEMES
LIC’s Group Term Insurance Schemes such as Plan-1 (Without Profit) - UIN 512N275V01 and Plan -2 (With Profit)- UIN512N276V01 have been instrumental in safeguarding the future of the many workers in India. LIC’s Group Term Insurance Scheme provides life insurance protection to members of several groups i.e. employer-employee as well as non employer-employee groups. Underwriting and administration of the scheme is on group basis; hence the cost is very low.
PREMIUM RATES
The premium rates depend on group size, age distribution, occupation and nature of work of the members of the group. In with profit schemes, subsequent years’ premium may be reduced by profit sharing, if claims experience is favourable.
BENEFITS
In case of death of a member covered under the scheme, the sum assured is payable to the nominee.
DIFFERENT TYPES OF GROUP INSURANCE COVERS Employer - Employee Groups (Uniform or Graded cover)
The simple form of group insurance scheme wherein a uniform insurance is provided to all the employees of the group. Similarly, different levels of insurance is offered to different categories of employees, based on their designation, salary, etc. Group Insurance in lieu of PF-EDLI is another type of group insurance scheme, which is also a uniform or graded cover. Group insurance is also used as a credit shield to cover the outstanding loans of their employees, such as housing, vehicle loans or some other benefits like life cover to supplement pension or PF benefits in case of death.
Non Employer-Employee Groups
Banks may provide the group insurance to all its savings bank account holders as an additional feature. A group insurance scheme may be introduced to provide coverage of maturity amounts for all recurring deposit-holders.
GENERAL FEATURES OF SCHEME
The premium under the scheme may be wholly paid by the employer / Nodal Agency (in case of non-employer-employee scheme). The scheme may be contributory i.e. the members may also contribute.