Front-End Application Package (FEAP) is a comprehensive software platform implemented by the Life Insurance Corporation of India (LIC) to digitalize its operations and enhance customer service. It serves as the primary interface for both branch operations and on-demand customer services across LIC's extensive network of over 2,048 branches 1,570 satellite offices licindia.in Core Purpose and Significance
Paid-Up Value
If you stop paying premiums after at least 2 years but don’t surrender, the policy becomes paid-up. The Sum Assured reduces proportionally:
Benefits of LIC EFAP:
- Employee Status: The deceased must have been a permanent employee of LIC (including Class I, II, III, and IV officers/employees).
- Cause of Death: Death can be due to any cause – illness, accident, or natural reasons – while the employee was still actively serving LIC.
- Exclusions: If the employee had resigned, retired voluntarily, or was dismissed from service before death, EFAP does not apply.
Common Questions About LIC EFAP
1. Is EFAP taxable?
- The lump sum ₹2 lakh is tax-free under Section 10(10D) as it is an ex-gratia welfare payment.
- The monthly family assistance is taxable as “income from salary” in the hands of the nominee. TDS may apply.
While "EFEAP" is an LIC-specific internal software, the acronym also stands for Employee and Family Assistance Program in the general insurance and HR industry. PEO Canada Generic EFAP:
- 7 times the annualized premium (for policies with sum assured < ₹2.5 lakh), or
- 125% of the Basic Sum Assured (for policies with sum assured ≥ ₹2.5 lakh), or
- Absolute amount assured to be paid on death (which is the Basic Sum Assured + any guaranteed additions, if applicable).