Digit Life Group Micro Term Insurance is available to various entities, including employers, associations, financial institutions, credit card issuers, and lending organizations to be further issued to their borrowers. Thus, it’s a B2B2C product.
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Digit Life Group Micro Term Insurance
What is Digit Life Group Micro Term Insurance?
Digit Life Group Micro Term Insurance is a non-linked, non-participating, group pure risk premium micro life insurance plan that provides life insurance cover to insured members.
In case of unfortunate events that affect the paying capability of the borrower, this plan protects their families with death benefit. This coverage is paid either as lumpsum benefit or in form of regular payouts or provides combination of both as per the chosen option.
The plan is available for not just the credit customers but also for other groups like employer- employee, non-employer – employee and affinity groups.
In simpler terms, it is a Group Credit Protection Plan that offers a range of inbuilt optional benefits like financial protection against accidental death and disability, critical Illness etc., to create a customised and comprehensive protection solution.
What’s Great About Digit Life Group Long Term Plan?
- Provides Inbuilt Optional Benefits like Accidental Death Benefit, Terminal Illness Benefit, Critical Illness Benefit.
- Provides different options for Death Benefit Payout: Lumpsum, Regular Income or a combination of both.
- Customise coverage as per your preference and a premium that suits your customers.
- Choose from Single or Joint Life Cover Option
- Option of Level, Decreasing or Flexi Coverage type.
2. Tech-Enabled, Smooth Processes
- Capability to have completely digital and paperless processes.
- Direct API Integration with your organisation for faster processes.
- Relaxed Health Underwriting through video MER (Medical Examination Report) for large loan amounts. This minimises the hassle of medical tests.
3. Aligned with Your Business
- In case of favourable claims experience a part of the premium is refunded to the master policyholder, depending on the terms as mutually agreed.
- Flexibility to choose your premium payment frequency, whether it's annual, half-yearly, quarterly, or monthly, enabling you to manage your cash flow efficiently.
- If TROP option is chosen, there is a return of all the premiums received for death benefit to the insured member in case there is no death claim and member survives till the end of coverage term, thus strengthening your relationship with your customers.
4. Wellness Benefits *
- 15+ Wellness Benefits to the insured members to incentivize them for taking care of their health and maintaining healthy lifestyle through such wellness measures.
- These benefits include unlimited video doctor consultation, discounts on medicines, lab services facilitation, etc.
- Wellness Benefits also include Wellness Coach to help the insured members in proactively managing their health. This includes weight management, activity and fitness, dietary plans, alcohol rehabilitation.
What is Micro Group Credit Protection Scheme?
A group micro credit protection scheme is a low scale version of the group credit protection that provides coverage to a group of individuals who have borrowed from a financial institution or belong to a specific association. Digit Life Group Micro Term Insurance can be considered by specified Financial Institutions to cover its Borrowers under this scheme.
While safeguarding both lenders and borrowers, it also mitigates the risks associated with loan defaults due to unforeseen circumstances such as such as death, disability, involuntary unemployment, or critical illness. If a covered event occurs, the plan provides financial support to pay off the outstanding loan balance.
The primary objective of a group credit protection scheme is to protect lenders from potential losses due to loan defaults, while also providing borrowers with peace of mind knowing that their loan obligations would be covered under unusual circumstances.
Benefits of Micro Group Credit Protection Scheme
It ensures a financial protection for both lenders and borrowers, assuring their outstanding credit is covered in unforeseen events, preserving their financial stability and reducing the burden on families.
Enhanced Customer Confidence
By extending their services to credit protection, this plan enhances trust between borrowers and lenders. Customers feel secure knowing their financial commitments are safeguarded, increasing their confidence in borrowing from the particular lender.
The plan mitigates risks for both borrowers and lenders by transferring the risk of default to the insurance provider. This allows them to focus on their core activities and pursue growth opportunities with greater confidence.
The group or organization providing Protection Plan gain a competitive edge against their competitors. It positions them as a reliable and responsible partner, attracting more customers and members.
How Micro Group Credit Protection Scheme Works?
Group EnrolmentA group, such as an employer, financial institution, affinity groups or association, selects a plan and enrols the eligible members.
Premium CalculationThe premium for the plan is calculated based on various factors, including the loan amount, the number of participants, and the level of coverage chosen. The premium is often a fixed percentage of the loan amount and is incorporated into the borrower's monthly payments.
Coverage ActivationOnce enrolled, participants become eligible for coverage under the plan. In the event of a covered event, such as death, disability, critical illness, etc., participants can file a claim to activate the coverage.
Claim Evaluation and PayoutThe insurance provider evaluates the claim to determine its validity and eligibility for coverage. If approved, the outstanding loan balance is paid off, either partially or in full, depending on the terms of the plan. This provides the borrower with mental peace considering that its dependents are free from the obligation of loan repayment and protects the lender from financial loss.
Things to Consider Before Buying a Micro Group Credit Protection Scheme
Coverage Limitations and ExclusionsCarefully review the terms and conditions of the plan to understand the coverage limitations, exclusions, waiting periods, and any pre-existing condition clauses. Ensure that the plan aligns with your specific needs and provides adequate protection for potential risks.
Financial Stability of the ProviderResearch the insurance provider's financial strength and stability. A reputable and financially secure provider ensures that claims will be paid promptly and that the plan will remain viable over the long term.
Eligibility and Participation RequirementsUnderstand the eligibility criteria and participation requirements set by the group credit protection plan. Ensure that you meet the necessary criteria to enrol and receive the benefits of the plan.
Premiums and Affordability
Evaluate the premium costs associated with the group credit protection plan and assess whether they fit within your budget. Consider the affordability of the premiums in relation to the benefits provided by the plan.
Digit Life Group Micro Term Insurance provides a vital safety net for groups and organizations by protecting them against the risk of default on credit facilities. By offering comprehensive coverage and hyper customisable plans, Digit Life Group Micro Term Insurance ensures financial security, enhances customer confidence, and strengthens risk management practices.
* 1. The applicability of the wellness benefit program and its features may be amended from time to time as per the prevailing underwriting policy of Go Digit Life Insurance Limited. The list of benefits under this program and terms and conditions applicable to it are provided in Annexure I in the Product Brochure.
2. Wellness benefit is a feature of Digit Life Group Micro Term Insurance. These features are provided under the Wellness benefit program. Wellness services are extended through 3rd party Service
Providers. The cost of availing services shall be borne by the insured directly. Digit Life Insurance is not responsible in any manner for nature or quality of product/services or discounts provided by the empaneled Service Providers. You can refer to the respective Service Provider’s terms and Conditions before availing any services. The offerings of the Service Providers, including any discounts or complimentary access / service are subject to change from time to time. For more details, please read policy terms and conditions carefully before concluding the sale.
FAQs About Digit Life Group Micro Term Insurance
Micro Group Credit Protection can cover different types of credit facilities, including loans, credit cards, mortgages, overdrafts, and other forms of credit extended to members or customers.
In the event of death of a member or customer, Group Credit Protection covers the outstanding debts or loans, relieving the dependents of the policyholder from the financial burden.
Micro Group Credit Protection is usually an optional benefit offered by the group or organization. However, certain lending institutions may require it as a condition for granting credit.
The Minimum Sum Assured in this plan is:
- Death Benefit - ₹1,000 per person
- Inbuilt Optional Benefit - ₹1,000 per person for each benefit
- This is an informative article provided on 'as is' basis for awareness purpose only and not intended as a professional advice. The content of the article is derived from various open sources across the Internet. Digit Life Insurance is not promoting or recommending any aspect in the article or its correctness. Please verify the information and your requirement before taking any decisions.
- All the figures reflected in the article are for illustrative purposes. The premium for Coverage that one buys depends on various factors including customer requirements, eligibility, age, demography, insurance provider, product, coverage amount, term and other factors
- Tax Benefits, if applicable depend on the Tax Regime opted by the individual and the applicable tax provision. Please consult your Tax consultant before making any decision.