https://livesamacharnews.com/bade-miyan-chhot…a-spectacular-ac/
Life Insurance Corporation of India (LIC), the country’s largest
life insurer, has recently introduced “Amritbaal,” a specialized insurance plan tailored to meet the future financial needs of children. This non-linked, non-participating, individual savings life insurance policy is meticulously designed to build a substantial corpus to cover higher education and other essential expenses for children.
LIC Introduces “Amritbaal”: A Tailored Insurance Solution for Your Child’s Future
The minimum and maximum age at entry are 30 days (completed) to 13 years (last birthday), respectively. The minimum and maximjum age at maturity are 18 years (last birthday) and 25 years (last birthday), respectively. The minimum policy term for limited premium payment is 10 years and for single premium payment is 5 years.
The maximum policy term for both limited and single premium payment is 25 years. In case of policies procured through POSP-LI (point of sales persons — life insurance) /CPSC-SPV (Common Public Service Centers – State Public Vehicle), the maximum policy term is 20 years. “On date of maturity, the sum assured along with guaranteed additions will be payable for in-force policy.
Maturity amount can also be received through settlement options in installments over 5, 10 or 15 years,” LIC said. On the death of life assured during the policy term under an in-force policy, the guaranteed additions in the year of death will be payable for the full policy year, it added. In case of surrender of an in-force policy, the guaranteed additions for the policy year in which the policy is surrendered will be added on proportionate basis in proportion to the completed months for the Policy Year in which policy is surrendered.
Key Features of “Amritbaal”
- Sum Assured: The policy offers a minimum sum assured (SA) of ₹2 lakh, with no maximum SA (subject to underwriting decision), ensuring flexibility to suit varying financial capacities.
- Corpus Accumulation: Through guaranteed additions at the rate of ₹80 per thousand basic sum assured annually, the policy facilitates the steady accumulation of a substantial corpus from the inception till the end of the policy term, provided the policy remains in force.
- Age Criteria: Children between 30 days (completed) and 13 years (last birthday) can be enrolled. The minimum and maximum ages at maturity are 18 years (last birthday) and 25 years (last birthday), respectively.
- Policy Term: The minimum policy term for limited premium payment is 10 years and for single premium payment is 5 years. Both limited and single premium payment options have a maximum policy term of 25 years. Policies procured through POSP-LI / CPSC-SPV have a maximum term of 20 years.
- Maturity Options: On the date of maturity, the sum assured along with guaranteed additions becomes payable for in-force policies. Additionally, policyholders have the flexibility to receive the maturity amount through settlement options in installments over 5, 10, or 15 years.
- Death Benefit: In the unfortunate event of the life assured’s demise during the policy term under an in-force policy, the guaranteed additions for the year of death are payable for the full policy year.
- Surrender Benefit: Upon surrender of an in-force policy, the guaranteed additions for the policy year in which the policy is surrendered will be added on a proportionate basis, ensuring fairness.
- Premium Waiver Benefit Rider: Under an in-force policy, the premium waiver benefit rider can be opted for on the life of the proposer of the policy (as the life assured is a minor) by paying an additional premium.
Conclusion
“Amritbaal” emerges as a comprehensive solution to secure a child’s future, providing financial stability and flexibility. With its unique features and tailored benefits, LIC continues to uphold its commitment to safeguarding the aspirations and dreams of India’s children.