LIC Launches Single Premium Group Micro Term Insurance Plan

With effect from October 10, 2024, Life Insurance Corporation of India (LIC) has launched the Single Premium Group Micro Term Insurance Plan. This plan is a pure risk, group, non-linked, non-participating life microinsurance policy. The plan is specifically made to offer straightforward, adaptable, and reasonably priced life insurance to meet the demands of financial institutions, such as Micro Finance Institutions, Cooperatives, Self-Help Groups, and NGOs, in order to ensure the cover of their members and beneficiaries.

Members of unorganised groups, employer-employee groups, and other uniform affinity groups are also covered in terms of their basic insurance requirements. In the unfortunate event that the policyholder passes away, the plan covers the families from having to bear the burden of repaying existing loans and offers banking institution customers personalised credit protection.

Benefits of LIC Single Premium Group Micro Term Insurance Plan

• Available for groups with size 50 or more members.
• Risk cover Sum Assured ranging from Rs.5000 to Rs.200000 for members.
• Single Premium mode payable in one lump sum.
• Flexibility to choose a term from 1 month to 10 years for risk cover.
• Joint Life cover for spouses available under Lender-Borrower relationships.
• Easy to avail. No need for any medical examination.

LIC commemorated its 68th anniversary on September 1, 2024, earlier this month. With an asset base of Rs. 52.85 lakh crore and a life fund of Rs. 44.31 lakh crore, LIC has grown since its establishment in 1956 with just Rs. 5 crore. The total premium income for the year was Rs. 4.75 lakh crore, up 0.22% from the year before. At Rs. 51.21 Lakh Crore, total AUM climbed by 16.48%, and the solvency margin improved to 1.98. The Indian Embedded Value (IEV) increased significantly, rising by 24.92% from Rs. 5.82 lakh crore on March 31, 2023, to Rs. 7.27 lakh crore on March 31, 2024.

The Net Value of New Business (VNB) has increased as well; it is now Rs. 9,583 crore as opposed to Rs. 9,156 crore the year before. In a similar vein, the net VNB margin went from 16.2% to 16.8%. The percentage of non-participating businesses in Annualised Premium Equivalent (APE) under the individual category climbed to 18.32% from 7.12% in 2022 and 8.89% in 2023. In the fiscal year 2023-2024, a total of 221.80 lakh claims (including individual, microinsurance, and P&GS) were met, totalling Rs. 2.30 lakh crore. The proportion of paid death claims was 98.35, while the percentage of paid maturity claims was 93.48. LIC boasts a robust workforce consisting of over 14 lakh agents, 98,661 employees, 113 Divisional Offices, 8 Zonal Offices, 74 Customer Zones, 2048 Branch Offices, and 1584 Satellite Offices.

On Monday, the shares of LIC closed 4.16% lower on the BSE at Rs 930.55 apiece with a market cap of Rs 5,88,572.66 Cr.