LIC introduces new plan for children

Key features include guaranteed additions, flexible premium options, etc

LIC introduces new plan for children

Life & Health

By Roxanne Libatique

Life Insurance Corporation of India (LIC) has unveiled a new endowment insurance plan – Amritbaal.

The new plan targets parents seeking to secure their children’s future educational and other financial needs. It is available for purchase both online and offline starting February 17, 2024.

What is Amritbaal?

Amritbaal is a non-linked, non-participating, individual savings life insurance product with the aim of building a substantial fund to support the educational expenses and other necessities of children. It emphasises the accumulation of funds through guaranteed additions.

As a non-participating plan, Amritbaal guarantees fixed benefits upon death or survival of the policyholder, without the potential for discretionary bonuses or a share in surplus profits. The policy is available through various channels including licensed agents, corporate agents, brokers, insurance marketing firms, and point of sales persons-life insurance (POSP-LI)/common public service centres (CPSC-SPV), in addition to direct online purchases via LIC’s official website.

Key features

Key features of the plan include a guaranteed addition of ₹80 per thousand of the basic sum assured for the duration of the policy term. It also offers:

  • flexibility in selecting the life insurance coverage level;
  • choice between single premium and limited premium payment options; and
  • the maturity age ranging from 18 to 25 years to cater to different requirements of a child’s future.

Policyholders also have the option to receive payouts in instalments and can opt for a Premium Waiver Benefit rider by paying an additional premium. Additionally, the plan offers a loan facility to meet liquidity needs and includes a rebate for high sum assured amounts.

How to be eligible

Eligibility criteria and restrictions specify the minimum and maximum age at entry set at 0 years (after 30 days completed) and 13 years (last birthday), respectively.

The minimum and maximum maturity ages are 18 and 25 years (last birthday), with policy terms varying based on the payment option chosen.

The premium payment term ranges from a single payment to five, six, or seven years, depending on the plan selected.

In its latest financial report, LIC revealed a 50% increase in its profit for the third quarter (Q3), mainly driven by significant augmentation in the transfer of funds to its shareholders’ fund.

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