LIC Group Insurance Scheme In LIEU Of EDLI
What is the nature of this scheme and why it was introduced?
LIC Group Insurance Scheme in Lieu Of EDLI is basically launched in order to provide groups of people, a life insurance protection. Since the administration of this plan is made based on group, the cost is also less.
Life insurance cover is given to each and every member of the group in this scheme, provided with certain simple conditions on insurance and there is no insistence on the medical evidence.
This LIC Group Insurance Scheme in Lieu Of EDLI is offered with cover only on the event of death and hence at the end of the term of the plan, there will be no maturity value provided.
Currently, this LIC Group Insurance Scheme in Lieu Of EDLI is provided under a scheme called One Year Renewable Group term assurance plan. Thus, depending on the changes in size and age distribution of the age group, premium is charged by the LIC on the date Annual Renewal each year.
This premium amount can be paid as a whole either by the employer or by the Nodal Agency. Since the scheme is contributory, the premium can also be contributed by the members.
What are the advantages of this policy?
The following are the advantages provided to the employer through this LIC Group Insurance Scheme in Lieu Of EDLI. Usually, the premium amount that the employer pays is less than the total contribution which is paid to R.P.F.C.
Only the death certificate and a claim form are expected from the employer for the settlement of the claim. Hence, it becomes quicker. In case of Income Tax, the premium that the employer pays, is considered and treated to be the normal business expenses.