Page 37 - Insurance Times August 2018

Life Insurance Plan
L IC’s Group Credit Life Insurance is a non–linked,
non-participating single premium group term
insurance plan. This plan offers an insurance cover No loan is available under this plan.
on death of the group member during the policy term.
The amount of insurance cover i.e. sum assured shall
depend on the loan amount, rate of interest, moratorium
period, if any, and nature of the loan, the sum assured in
respect of each member may vary during policy term and
it will be guided by the scheme rules of the loan provider
(i.e. Master Policyholder).
1. Benefits
Death Benefit:
In case of unfortunate death of a member under a policy
during the policy term, a Sum Assured as per the risk cover
schedule in respect of that member shall be paid.
Maturity Benefit:
On survival to the end of the policy term, nothing shall be
payable.
2. Eligibility conditions and other
restrictions
a) Minimum Entry Age : 18 years (completed)
b) Maximum Entry Age : 60 years (nearest
birthday)
c) Maximum Maturity Age : 65 years (nearest
birthday)
d) Minimum Sum Assured : Rs.400000/-
e) Maximum Sum Assured : No limit.
f) Policy Term : 5 to 35 years
g) Minimum group size : 50 members
h) Premium payment mode : Single premium only
Group Credit Life
Insurance
from Life Insurance Corporation of India
3. Loan:
4. Surrender Value:
Surrender of insurance cover by a member:
Surrender of insurance cover by a member shall be allowed
at any time after the entry of that member into the policy
but before 6 months prior to the end of policy term,
provided the loan is fully repaid.
The surrender value shall be Surrender Value Factor
multiplied by single premium paid (excluding taxes and
extra premium, if any). The Surrender Value Factor shall
depend on the Policy term and nearest half-yearly durations
from the entry date of the member to the date of surrender
and is enclosed as specified in the table below. Surrender
value shall be payable provided it is at least Rs.100/-.
Surrender of policy by the Master Policyholder:
The Policy can be surrendered by the Master Policyholder
at any time after the date of commencement of the policy.
Surrender value under the policy shall be the sum total of
the surrender values in respect of individual members
opting to surrender their insurance cover of the scheme.
However, in case of surrender of the policy by Master
Policyholder, the Corporation shall give an option to the
individual members of the group who are not interested in
surrendering the insurance cover to continue as an
individual policy under group business and the Corporation/
intermediary, if any, shall continue to be responsible to
serve such members till their coverage is terminated.
5. Taxes:
Taxes including service tax, if any, shall be as per the Tax
Laws and the rate of tax as applicable from time to time.
The amount of tax as per the prevailing rates shall be
The Insurance Times, August 2018 37