The Life Insurance Corporation (LIC) of India has unveiled a new insurance offering called the ‘Single Premium Group Micro Term Insurance’ plan. This non-participating, non-linked, group-based life micro-insurance product aims to provide financial protection to members of various financial institutions, including microfinance institutions, cooperatives, self-help groups (SHGs), and non-governmental organizations (NGOs).
The plan caters specifically to unorganized groups, employer-employee groups, and other homogeneous affinity groups, offering them a flexible and affordable life insurance solution. With the potential to reach a significant portion of India’s uninsured population, the plan provides coverage at a nominal cost, thereby addressing a crucial gap in the country’s insurance market.
A unique feature of this product is its credit protection aspect, which safeguards the families of loanees by covering outstanding loans in the event of the borrower’s demise. Available for groups of 50 or more members, the sum assured ranges from ₹5,000 to ₹2,00,000 per member.
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Additional highlights include a one-time premium payment, flexible coverage terms from one month to ten years, and the option for joint life cover for spouses under lender-borrower arrangements. Furthermore, the plan does not require any medical examination, making it easily accessible to a wide range of customers.
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