LIC Group Term Ease Plan

During a period when families are heavily burdened by rising living costs and increased financial liabilities, this newly introduced plan is geared toward making life insurance more accessible and affordable for working individuals in particular.

What is the LIC Group Term Ease Plan?

LIC Group Term Ease Plan is a newly launched pure term insurance policy by LIC of India. This signifies that it can cover the financial loss due to the unfortunate death of the insured member while the policy is still in force but it does not have any benefits related to the maturity of the policy or investment of the premium.

Since the plan is a non-participating, non-linked product, it is not dependent on market performance and thus does not pay dividends. The only objective of the plan is to provide risk cover, meaning that if a member of the group passes away while the plan is still in effect, the nominee will receive the agreed sum assured.

As one of the LIC group plans, it is targeted towards employers, companies, institutions, and other entities that are willing to offer financial protection benefits to their employees or members.

Key Features of the LIC Group Term Ease Plan

Pure Risk Coverage

The LIC term plan provides life insurance cover without an investment element. It is all about paying the nominee a lump sum in the event of death during the policy period.

Non-Participating & Non-Linked Structure

As a term insurance plan, the LIC Group Term Ease Plan is non-participating; thus, the customers don't get bonuses. Non-linked means the policy is not associated with equity or debt markets, and hence the terms of coverage remain stable and predictable.

Group-Based Policy

The insurance is issued under a single master policyholder (such as an employer), and individual members are covered under the master policy. This facilitates easier management and lower premiums due to bulk underwriting.

Cost-Effective Premiums

Group insurance usually enjoys lower premium rates than individual term policies as the risk is shared among a large number of members.

Simplified Onboarding

Often, medical tests are either very minimal or not required at all in group term policies for members up to a certain limit, as per underwriting standards. This provides for quick enrollment and easy access.

What are the Benefits of the LIC Group Term Ease Plan?

Affordable Financial Security

With large individual term coverage, it might be pricey for private sector or MSME workers to buy that. A plan like this lets them have a bigger payout with a smaller premium through their employer.

Immediate Protection for Families

If there is such a case, the nominee gets an immediate cash payout. This amount can help cover loans, EMIs, children's education, household expenses, or other liabilities.

Employer-Sponsored Benefit

More employee welfare by offering the employees a company insurance scheme. This way the employees get more benefits without the costs accumulating.

Tax Efficiency for Employers

Group health insurance policy premiums that are paid by the employer are generally considered as business expenses, thus providing tax efficiency while also increasing employee retention.

Peace of Mind

A family getting financial assistance during tough times is reflected as peace of mind for the insured member.

Summing Up

The LIC Group Term Ease Plan is a simple, affordable, and practical solution for organizations seeking to provide financial protection to their employees. By focusing purely on risk coverage, it keeps premiums low while ensuring meaningful life cover.

For the common working professional, this plan offers access to substantial life insurance at a fraction of individual policy costs. For employers, it strengthens employee welfare programs. In essence, it simplifies protection, making term insurance easier and more accessible than ever before.

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