Life Insurance Corporation of India launches an affordable life insurance solution for micro-finance institutions, SHGs, and more, effective from 7th October 2024.
The Life Insurance Corporation of India (LIC) has launched a new insurance product, the Single Premium Group Micro Term Insurance Plan, starting from 7th October 2024. This non-participating, non-linked, pure risk, group micro insurance plan is designed to provide essential life coverage to members of micro-finance institutions, cooperatives, self-help groups (SHGs), and non-governmental organizations (NGOs).
The plan focuses on offering simple, flexible, and affordable life insurance, specifically targeting financial institutions looking to cover their members or borrowers. It also caters to the insurance needs of members in unorganized groups, employer-employee groups, and other similar homogeneous affinity groups.
Key Features of LIC’s Single Premium Group Micro Term Insurance Plan:
1. Designed for Financial Institutions:
The plan is ideal for financial institutions, including Micro Finance Institutions (MFIs), cooperatives, SHGs, and NGOs. These organizations can use the plan to provide life insurance coverage to their members or borrowers, ensuring that outstanding loans do not become a burden for families in case of the breadwinner’s death.
2. Affordable and Accessible:
LIC’s new plan offers a low-cost life insurance solution for a significant portion of India’s uninsured population. By making life insurance more accessible, it ensures that more people can benefit from financial protection, especially in the case of untimely deaths.
3. Credit Protection:
A key feature of the product is its ability to provide customized credit protection. In case of the unfortunate demise of the insured member, the plan ensures that families are not burdened by the repayment of outstanding loans, giving both the institutions and the insured members peace of mind.
Addressing the Gap in India’s Insurance Market
The launch of the Single Premium Group Micro Term Insurance Plan reflects LIC’s commitment to addressing the insurance needs of India’s large uninsured population. This plan is expected to make a significant impact in providing affordable life insurance solutions for people in lower economic strata who are part of micro-finance institutions, SHGs, and similar groups.
By ensuring financial protection at a nominal cost, LIC continues to fulfill its role as a leader in India’s insurance market, extending its reach to the segments of the population that need it the most.
