EFAP typically covers 80% to 100% of the eligible expenses, subject to a ceiling limit (e.g., ₹ 2 lakhs for heart surgery, ₹ 5 lakhs for transplant).
(Equity Fixed Term Action Plan) is essentially a unit-linked, non-participating, individual life insurance savings plan. While the name might sound complex, the concept is straightforward: it combines the protective cover of life insurance with a systematic investment mechanism that taps into equity markets. lic efap
| Feature | LIC EFAP | Mutual Fund (SIP for Retirement) | EPF (Employees' Provident Fund) | | :--- | :--- | :--- | :--- | | | IRDAI (Insurance) | SEBI | EPFO | | Risk Profile | Low to Moderate | Varies (High to Low) | Very Low (Government-backed) | | Insurance Cover | Built-in (Death benefit) | No | Yes (EDLI - limited) | | Flexibility | High (Fund choice, annuity) | High | Low (Fixed contribution rate) | | Best Suited For | Corporate pension/gratuity top-ups | Individual retirement planning | Mandatory statutory savings | EFAP typically covers 80% to 100% of the
Unlike traditional LIC plans where bonuses are declared annually based on the company’s overall performance, EFAP is market-linked. The returns are dependent on the performance of the investment funds chosen by the policyholder. The "Fixed Term" aspect implies a disciplined investment horizon, encouraging long-term wealth accumulation rather than short-term speculative gains. | Feature | LIC EFAP | Mutual Fund
Ensuring accurate and speedy completion of insurance proposals and the dispatch of policy documents. The Evolution to e-FEAP
LIC EFAP represents the culture of "family" within the LIC organization. By understanding its nuances, you can protect your finances during the most vulnerable times—medical emergencies.