New Delhi: The Life Insurance Corporation of India (LIC) has launched a new single-premium group micro-term insurance plan aimed at financial institutions and their members. This non-linked, non-participating insurance product is designed to offer affordable and flexible life insurance coverage to a range of financial institutions, including microfinance institutions, co-operatives, self-help groups, and NGOs.

The plan aims to cater to unorganized groups, employer-employee setups, and other affinity groups, providing credit protection for members and safeguarding their families from the financial burden of loan repayment in the event of the policyholder’s death. It is available to groups with at least 50 members, offering a sum assured between Rs 5,000 and Rs 2 lakh, with flexible policy terms ranging from 1 month to 10 years.

LIC’s product comes with easy enrolment, requiring no medical examination, and also provides an option for joint life cover for spouses in lender-borrower arrangements. The plan is expected to offer much-needed financial security for members of such groups, helping them manage their credit liabilities. 

BI Bureau