LIC, the largest life insurance company in India, has launched a new plan called ‘LIC’s Amritbaal’ to help parents save for their child’s higher education. The plan is a traditional endowment policy that offers guaranteed additions and maturity benefits.
What is LIC’s Amritbaal Plan?
LIC’s Amritbaal is a non-linked, non-participating individual savings and life insurance plan. It is designed to provide a corpus for the child’s higher education and other needs. The plan has two options: limited premium payment and single premium payment.
The limited premium payment option allows the policyholder to pay premiums for 5, 6 or 7 years, depending on the policy term. The policy term can be chosen from 10 to 25 years. The minimum age at entry for the child is 30 days and the maximum is 13 years. The minimum age at maturity is 18 years and the maximum is 25 years.
The single premium payment option allows the policyholder to pay the premium as a lump sum at the inception of the policy. The policy term can be chosen from 5 to 25 years. The minimum age at entry for the child is 90 days and the maximum is 13 years. The minimum age at maturity is 18 years and the maximum is 25 years.
What are the benefits of LIC’s Amritbaal Plan?
LIC’s Amritbaal offers guaranteed additions at the rate of Rs 80 per thousand basic sum assured at the end of each policy year from the inception till the end of policy term, provided the policy is in force. The guaranteed additions are payable along with the basic sum assured on maturity or death.
On maturity, the policyholder will receive the basic sum assured plus guaranteed additions plus loyalty addition, if any. The loyalty addition is a discretionary benefit that may be declared by LIC depending on its experience.
On death of the life assured before the stipulated date of maturity, provided all due premiums have been paid, an amount equal to sum assured on death plus guaranteed additions plus loyalty addition, if any, shall be payable. The sum assured on death is higher of 10 times of annualised premium or basic sum assured.
The plan also provides an option to defer the payment of maturity benefit up to five years after the date of maturity. The deferred amount will earn interest at a rate determined by LIC from time to time.
The plan also offers a loan facility after completion of one policy year. The maximum loan amount will be up to 90% of the surrender value for single premium policies and up to 80% for limited premium policies.
The plan also allows partial withdrawals after completion of five policy years or attainment of 18 years by the life assured, whichever is later. The maximum amount that can be withdrawn in a policy year is 15% of the guaranteed surrender value.
How to buy LIC’s Amritbaal?
LIC’s Amritbaal can be purchased online or offline through LIC’s website or agents. The minimum basic sum assured is Rs 1 lakh and there is no maximum limit. The premium rates vary depending on the age, gender, policy term and premium payment option of the life assured.
The plan also requires a medical examination for certain age groups and sum assured levels. The cost of medical examination will be borne by LIC.
Why choose LIC’s Amritbaal?
LIC’s Amritbaal is a suitable plan for parents who want to secure their child’s future with a guaranteed return policy. The plan offers flexibility in choosing the policy term, premium payment option and maturity benefit option. The plan also provides life cover, loan facility, partial withdrawal facility and loyalty addition.
LIC’s Amritbaal is backed by LIC’s trust and credibility as India’s leading life insurer. LIC has a claim settlement ratio of 98.34% for individual policies as per IRDAI annual report 2022-23.
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