The latest offering from the Life Insurance Corporation of India (LIC) is the Amritbaal endowment plan. This individual, savings-oriented life insurance policy aims to provide financial security for children’s future needs.
The plan, available both offline and online starting from February 17, 2024, is poised to address the growing concerns of parents regarding their children’s education and other essential requirements.
LIC’s Vision
LIC designed the Amritbaal plan with a specific focus on building a substantial corpus to meet the higher education expenses and other essential needs of children. The plan accepts children from a minimum entry age of 30 days up to a maximum age of 13 years.
Accumulation of Corpus
According to LIC’s press release, the Amritbaal policy facilitates the accumulation of corpus through guaranteed additions at a rate of Rs 80 per thousand basic sum assured at the end of each policy year from the inception until the end of the policy term, provided the policy remains in force.
Policy Details
- Minimum maturity age: 18 years (as of the last birthday)
- Maximum age at maturity: 25 years (last birthday)
- Premium payment terms: 5, 6, or 7 years for short premium payment options; minimum policy term of 10 years for limited premium payment options; minimum term of 5 years for single premium payment
- Rebate offered for opting for a high basic sum assured and for proposals completed under online sales channels
Benefits
- Minimum sum assured: Rs 2 lakh with no maximum limit for the basic sum assured
- Maturity benefits include the sum assured on maturity along with guaranteed additions, which can also be received through settlement options in instalments over 5, 10, or 15 years.
- Death benefit payable during the risk cover period includes the sum assured on death along with accrued guaranteed additions for in-force policies.
Premium Waiver
LIC offers a premium waiver benefit rider, available by paying an additional premium, subject to eligibility conditions.
Commencement of Risk
The commencement of risk varies based on the age of the child at entry. For children below 8 years, the risk commences either 2 years from the date of policy commencement or the policy anniversary coinciding with or immediately following the attainment of 8 years of age, whichever is earlier. For those aged 8 years or more at entry, risk commences immediately upon policy issuance.
In summary, LIC’s Amritbaal plan stands as a comprehensive solution for parents seeking to secure their children’s financial future amidst life’s uncertainties.
