Digit Life Group Micro Term Plan

What is Digit Life Group Micro Term Insurance?

Digit Life Group Micro Term Insurance is a group life insurance product that provides coverage against the risk of death of an insured member during the policy term. The plan is offered to a group of individuals rather than to one person, making it accessible and cost-effective. It provides a lump sum benefit to the nominee in case of death and is structured to require minimal documentation and medical checks, ensuring ease of access for underserved communities.

Who Can Buy Digit Life Group Micro Term Insurance?

The Digit Life Group Micro Term Insurance plan is designed to cater to different types of groups, making life insurance accessible and affordable for a wide range of people. It is suitable for the following:

• Employer–Employee Groups: Organizations of all sizes, from small businesses to large corporations, can use this plan to provide life insurance benefits to their employees. It helps employers strengthen their employee benefit programs by offering financial security in addition to accident and health coverage.

• Non-Employer–Employee Affinity Groups: Professional associations, trade unions, clubs, and other organized groups that are connected by shared interests, affiliations, or professions can provide their members with affordable life insurance protection under this plan.

• Lender–Borrower Arrangements: Financial institutions such as RBI-regulated scheduled commercial banks, certified NBFCs, housing finance companies regulated by the National Housing Bank, small finance banks, microfinance institutions, and cooperative societies can use this plan to protect borrowers. It ensures that in the event of the borrower’s death, outstanding loan liabilities are taken care of, reducing financial stress on families.

What are the Eligibility Conditions for Digit Life Group Micro Term Insurance?

What are the Benefits of Digit Life Group Micro Term Insurance?

Digit Life Group Micro Term Insurance provides financial protection to members and their families with flexible coverage options. The key benefits include:

• Death Benefit: In the unfortunate event of a member’s death during the policy term, the nominee receives a lump sum payout, ensuring financial security.

• Flexible Coverage Options: Members can choose between:

  • Term Insurance: Offers pure protection, paying the sum assured to the nominee if the member passes away during the term. No benefits are payable if the member survives the policy term.

  • Term Insurance with Return of Premium (TROP): Provides death benefit during the term and refunds all premiums paid if the member survives until the end of the term.

• Customizable Sum Assured: Each member can select their sum assured at the start of coverage, tailored to individual needs.

• Varied Payout Structures: Members can choose between:

  • Level Cover: Full sum assured is paid as a lump sum to the nominee.

  • Decreasing Cover/Flexi Cover: Payout reduces according to a pre-agreed schedule, allowing alignment with personal financial planning requirements.

• Immediate Coverage End on Claim: Once the death benefit is paid, the member’s coverage under the policy concludes.

This plan ensures both financial security for the nominee and flexibility for the insured member, making it suitable for diverse financial planning needs.

What are the Inbuilt Optional Benefits under the Digit Life Group Micro Term Insurance?

Digit Life Group Micro Term Insurance offers optional benefits that can be selected by the master policyholder before the policy begins. Members can then choose from these options according to company guidelines. One key optional benefit is the Health Cover, which includes two sub-options. Members can select only one of these options:

1. Accelerated Critical Illness (CI) Benefit

   • Provides a lump sum payout if the insured member is diagnosed with a covered critical illness, based on the chosen CI variant.

   • Applicable for joint life cover, the benefit is paid when either of the two lives is first diagnosed.

   • Payout rules:

     • Level Cover: Full CI sum assured equal to the death benefit is paid in advance.

     • Decreasing/Flexi Cover: CI sum assured is based on the current value of the death benefit according to the pre-agreed schedule.

   • Terms:

     • Subject to a 90-day waiting period and a 30-day survival period.

     • Amount paid is part of the death benefit, not additional.

     • If CI benefit equals the full death benefit, the policy ends after payout; otherwise, the remaining death benefit continues.

   • Premiums vary depending on the optional benefits selected.

   • This benefit allows early access to the sum assured, providing financial support during a critical illness.

2. Additional Critical Illness (CI) Benefit

   • Offers extra financial support separate from the death benefit if the insured member is diagnosed with a covered critical illness.

   • Applicable for individual or joint life covers, with payout made when either life is first diagnosed.

   • Payout rules:

     • Level Cover: Full CI sum assured is paid.

     • Decreasing/Flexi Cover: Payout is based on the sum assured per the agreed schedule.

   • Terms:

     • Subject to a 90-day waiting period and a 30-day survival period.

     • Once paid, coverage for this CI benefit ends, but the member continues to be covered under the death benefit and other optional benefits.

   Important Notes:

   • CI claims are accepted only for first-time diagnoses and not for pre-existing conditions.

   • No CI benefit is paid if the policy is lapsed.

   • After a CI claim is paid, no further claims for related or dependent illnesses will be accepted.

   This structure ensures members receive early financial support during critical illnesses while maintaining overall coverage under the policy.

Critical Illness Variations Available under Digit Life Group Micro Term Insurance

The plan offers three variations of critical illness coverage:

Why Buy Digit Life Group Micro Term Insurance?

Digit Life Group Micro Term Insurance is designed to provide flexible, efficient, and member-focused protection. Here’s why it stands out:

1. Customisable Coverage

   • Offers multiple options for the death benefit payout, including lump sum, regular income, or a combination of both.

   • Choice of Single or Joint Life Cover.

   • Flexibility to select Level, Decreasing, or Flexi Coverage types based on your financial planning needs.

2. Tech-Enabled, Smooth Processes

   • Fully digital and paperless processes for convenience.

   • Relaxed health underwriting via video-based Medical Examination Reports (MER) for large loan amounts, minimizing the need for extensive medical tests.

3. Aligned with Your Business

   • Potential premium refunds to the master policyholder in case of favorable claims experience, as per agreed terms.

   • Flexible premium payment options – annual, half-yearly, quarterly, or monthly – for efficient cash flow management.

   • If the TROP (Term Insurance with Return of Premium) option is selected, all premiums paid for the death benefit are returned to the insured member if no claim arises and the member survives the coverage term.

4. Wellness Benefits

   Over 15 wellness benefits to encourage insured members to maintain a healthy lifestyle and proactive health management.

Additional Benefits Available with Digit Life Group Micro Term Insurance

Digit Life Group Micro Term Insurance offers several additional benefits to enhance protection, convenience, and wellness for members.

1. Profit-Sharing Option

   In the event of a favourable claims experience, the master policyholder may receive a partial refund of premiums, based on a mutually agreed formula with the insurer.

2. Wellness Benefits

   Members gain access to a broad range of wellness services designed to encourage healthy living. These include:

   • Doctor-on-Call and Wellness Coach support

   • Lab Services and Imaging for diagnostics

   • Pharmacy home delivery

   • Vital/Physical Activity Monitoring

   • Reminder notifications

   • Medical Wallet and Report Aggregator

   • Home Care and Ambulance Arrangement Services

   • Pick-up/Drop Services for consultations and appointment prioritisation

   • Mental wellbeing and Physiotherapy support

   • Childcare and children’s activities

   • Out-Patient (OPD) Services and Fitness programs

   Note: These wellness services are optional and are not part of the insurance coverage; costs are borne by the user.

3. All-in-One Personal Accident Protection Benefit

   Provides financial support for accidental injuries, disabilities, or death. Coverage includes:

   • Accidental Death: Full sum assured paid to the nominee if the insured passes away due to an accident within 12 months, including cases like drowning or disappearance.

   • Accidental Total and Permanent Disability (ATPD): Full sum assured paid for total and permanent disabilities caused by an accident within 12 months.

   • Accidental Permanent Partial Disability: Payouts vary based on severity, for example:

     • Loss of one hand or foot: 50% of sum assured

     • Loss of vision in one eye: 50%

     • Hearing loss: 50% (both ears), 20% (one ear)

     • Loss of fingers/thumb: 4–40%

     • Loss of toes: 5–20%

   • Accidental Temporary Total Disability: Weekly benefit of 0.2% of sum assured if disability lasts more than 4 weeks, up to 100 weeks.

   • Hospitalisation Due to Accident: Daily cash benefit of 1–5% of sum assured per day, capped at 10 days per year and 30 days per policy term.

4. Joint Life Coverage

   Allows two individuals (e.g., spouses or business partners) to be covered under a single policy. Features include:

   • Each person receives the same sum assured for chosen benefits.

   • Death Benefit is paid upon the first death, ending coverage for both individuals.

   • Critical Illness and Accident Benefits are paid upon the first qualifying event.

   • Surviving members continue to receive remaining applicable benefits.

   • Total payout is capped at the sum assured selected at policy inception.

5. Policy Flexibility and Member Alterations

   Group policies allow flexibility for adding or removing members under the master policyholder, such as employers or organizations. Ensures coverage evolves with the group’s needs while maintaining transparency and administrative ease.

Things to Consider Before Buying a Digit Life Group Micro Term Insurance

Before purchasing this plan, carefully evaluate the following:

• Coverage and Exclusions: Understand the limitations, waiting periods, and any pre-existing condition clauses to ensure the plan meets your needs.

• Financial Strength of the Provider: Choose a reputable and financially stable insurer to ensure timely claim settlement and long-term reliability.

• Eligibility and Participation: Confirm that you meet the plan’s eligibility criteria to access all benefits.

• Premiums and Affordability: Check that the premiums fit your budget and are justified by the coverage provided.

Additional Policy Details of the Things to Consider Before Buying a Digit Life Group Micro Term Insurance

• Understanding Policy Changes and Member Alterations:
  Group insurance policies provide flexible coverage for a collective of individuals under a master policyholder. As the group changes, the policy accommodates additions and removals of members.

• Adding New Members:
  New members can be included during the policy term on predefined dates. Premiums must be paid in advance, including any taxes or levies. The master policyholder should notify the insurer within 45 days of eligibility. Coverage starts from the member’s joining date or the notification date, whichever is earlier. The insurer reserves the right to accept or decline additions and may stop accepting new members with 30 days’ notice.

• Removing Members:
  Members may leave due to resignation, retirement, or other non-death reasons.

  • Premium Paid by Master Policyholder: Unexpired risk premiums are refunded, and coverage ends on the exit date.

  • Premium Paid by Individual Member: Coverage may continue under original terms, or the member may discontinue by notifying the insurer.

• Grace Period:
  A grace period allows extra time to pay overdue premiums without losing coverage, 15 days for monthly payments and 30 days for others. Benefits continue during this period, with adjustments depending on whether premiums are paid by the master policyholder or the member.

• Free Look Period:
  Provides the option to review and cancel the policy within 30 days of receipt. Master policy cancellation ends coverage for all members, while individual members can cancel their Certificate of Insurance, ending coverage only for themselves. Refunds are issued after deducting applicable charges.

• Lapse and Reduced Paid-Up Provisions:
  If premiums are unpaid beyond the grace period:

  • Term Insurance: The policy lapses, and no benefits are paid until revived.

  • TROP (Term Return of Premium): If at least two premiums have been paid, the policy becomes reduced paid-up. Benefits are scaled according to premiums paid, including a portion of the sum assured and maturity benefit.

• Surrender Provisions:
  If the master policyholder surrenders the policy, members can continue coverage under the same terms. Members who continue do not receive any surrender value.

• Reinstating Lapsed Coverage:
  Lapsed or reduced paid-up policies can be revived within five years from the first unpaid premium date. All due premiums and late fees are collected, calculated at a revival interest rate reviewed twice a year.