This is where EFAP truly helps families. The benefits are structured to provide both immediate lump sum support and long-term monthly assistance.
| Benefit Component | Details | |---|---| | Immediate Lump Sum | ₹2,00,000 (two lakh rupees) paid to the nominee within a few weeks of death. | | Monthly Family Assistance | 50% of the deceased employee’s last drawn basic pay + dearness allowance (subject to a minimum of ₹5,000 and maximum of ₹30,000 per month). | | Duration of Monthly Payout | Paid for 7 years from the date of death. | | Children’s Education Allowance | Additional allowance for up to two children until they turn 21 or complete graduation, whichever is earlier. | | Medical Reimbursement | Family continues to get medical benefits as per LIC’s rules for 7 years. |
You have a grace period of 30 days (15 days for monthly mode). If unpaid beyond that, the policy lapses. Within 2 years of lapse, you can reinstate it by paying all due premiums with interest. lic efap
Premiums paid under LIC EFAP are eligible for tax deduction under Section 80C of the Income Tax Act, up to ₹1.5 lakh per year. The maturity proceeds are generally tax-free under Section 10(10D), subject to the premium-to-sum-assured ratio being within limits (premium ≤ 10% of SA for policies issued after 01/04/2012).
| Parameter | Details | | :--- | :--- | | Min. Age at Entry | 8 years (completed) | | Max. Age at Entry | 55 years (nearer birthday) | | Max. Age at Maturity | 70 years | | Policy Term | 12 to 35 years | | Min. Sum Assured | ₹1,00,000 | | Sum Assured Multiples | ₹5,000 or ₹10,000 (depending on underwriting) | | Medical Exam | Required for high sum assured or age-based criteria (may be waived for lower sum assured with good health declaration) | This is where EFAP truly helps families
After completion of 2 full years of premium payment, the policyholder can avail of a loan up to 90% of the Surrender Value from LIC. This is useful for emergency liquidity without breaking the policy.
LIC EFAP is a solid choice for risk-averse employees who prioritize capital protection and guaranteed returns over high-growth, high-risk investments. It works best as part of a balanced portfolio—you can allocate a portion of your savings to EFAP for the debt-like stable component, while investing in equity mutual funds or PPF for growth. | Parameter | Details | | :--- | :--- | | Min
On survival till the end of the policy term, the policyholder receives:
This lump sum can be used for retirement planning, children’s higher education, marriage, or purchasing a home.