The Life Insurance Corporation of India (LIC) has unveiled a new single-premium group micro-term insurance plan aimed at enhancing access to life insurance for a broader range of individuals.
This innovative product is classified as a non-participating, non-linked, group, pure risk micro insurance offering. It has been specifically designed to meet the needs of financial institutions—including microfinance institutions, cooperatives, self-help groups (SHGs), and non-governmental organizations (NGOs)—allowing them to extend coverage to their members or loanees.
LIC’s latest initiative addresses critical insurance needs for members of unorganized groups, employer-employee relationships, and other homogeneous affinity groups. According to a company release, the product offers customized credit protection, safeguarding families from the financial burden of loan repayments in the event of the breadwinner’s demise.
The micro-term insurance plan is intended for groups with a minimum of 50 members and provides a risk cover sum assured ranging from ₹5,000 to ₹2 lakh. Participants can choose coverage terms from one month to ten years, and the plan can be easily accessed without the requirement for a medical examination. Additionally, joint life cover is available for spouses in lender-borrower relationships, further enhancing the product’s appeal.
