Life Insurance Corporation (LIC) has launched Amritbaal policy meant for children. It is a non-linked, non-participating, individual, savings, life insurance plan which parents can buy in the name of their kids.
This is an insurance product under which benefits payable on death or survival are guaranteed and fixed irrespective of actual experience.
Hence the policy is not entitled to any discretionary benefits like bonus etc. or share in Surplus. The policy also offers LIC’s Premium Waiver Benefit Rider.
Age at entry/ exit
The minimum age at entry is 30 days and the maximum age at entry is 13 years. The minimum age at maturity is 18 years and maximum age at maturity is 25 years.
The minimum policy term is 5 years for single premium and 10 years for limited premium payment. The maximum policy term is 25 years for limited and single premium payment.
Mode of instalment
Mode of instalment can be monthly, quarterly, half-yearly or yearly where the minimum instalment amount can be ₹5,000, ₹15,000, ₹25,000 or ₹50,000, respectively.
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Benefit
The proposer will have an option to choose ‘sum assured on death’ as per the two options available under each of single premium and limited premium payment. The options should be chosen carefully depending on child’s needs as the premium and benefits under the plan will carry as per the option chosen and same will not be altered later.
Limited premium payment
Option 1: Higher of seven times of annualised premium or basic sum assured
Option II: Higher of 10 times of annualised premium or basic sum assured.
Single premium payment:
Option III: Higher of 1.25 times of single premium or basic sum assured
Option IV: 10 times of single premium
Loans against the policy
Under Limited Premium payment (option I and option II), loan will be available as long as a minimum of two years of premiums have been paid.
Under single premium payment (option III and option IV), loan will be available during the policy term at any time after three months from the completion of the policy (i.e. three months from the date of issuance of policy) or after expiry of the free-look period, whichever is later.
The maximum loan that can be granted will be up to 90 percent of surrender value for in-force policies, up to 80 percent of surrender value for paid up policies and upto 75 percent of surrender value under single premium payment.
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Published: 17 Feb 2024, 05:23 PM IST