Life Insurance Corporation (LIC) introduced a new insurance plan, Amritbaal, designed for children. The policy, a non-linked and non-participating individual savings plan, can be purchased by parents for their kids. Amritbaal aims to build a sufficient fund for children's higher education and other needs. The plan offers consistent growth with guaranteed additions of Rs 80 per thousand basic sum assured at the end of each policy year. This benefit continues throughout the policy term, as long as the policy remains active.
Key features of Amritbaal insurance plan
1. Entry Age and Maturity Age
Minimum Entry Age: The policy is open for infants, with the minimum age set at 30 days completed, and the Maximum Entry Age is 13 years (last birthday).
Maturity Age: The policy matures when the insured reaches 18 years (last birthday) as the Minimum Age at maturity and 25 years (last birthday) as the Maximum Age at maturity.
2. Premium Payment Terms and Policy Durations
The plan offers various premium payment terms, with options for short terms of 5, 6, or 7 years. The minimum policy term differs for Limited Premium Payment (10 years) and Single Premium Payment (5 years). The maximum policy term varies between 25 years for Limited/Single Premium Payment and 20 years for policies procured through POSP-LI/CPSC-SPV.
3. Sum Assured and Maturity Benefits
For policyholders, the minimum sum assured is Rs. 2 lakh, with no upper limit on the maximum basic sum assured, subject to specific conditions. Upon maturity, the policy pays out the sum assured on maturity along with guaranteed additions for in-force policies. Additionally, the maturity amount can be received through settlement options, providing flexibility over 5, 10, or 15 years.
4. Death Benefit Options and Premium Waiver
Policyholders have the option to select "Sum Assured on Death" under both Single Premium and Limited Premium Payment.
In the unfortunate event of death during the risk cover period for in-force policies, the death benefit comprises the "Sum Assured on Death" along with accrued guaranteed additions.
Furthermore, LIC’s Premium Waiver Benefit Rider is available through an additional premium, contingent upon meeting eligibility conditions.
5. Additional Features
The policy incentivizes higher basic sum assured through a rebate and offers specific advantages for proposals completed through online sales. A loan facility is available during the policy term, subject to specified conditions. As a distinguishing feature, the plan falls under the category of a Non-Linked, Non-Participating Plan, providing policyholders with a unique set of benefits and features.
