LIC Introduces “Amritbaal” Insurance Scheme for Children

India’s leading life insurer, the Life Insurance Corporation of India (LIC), has introduced “Amritbaal,” an individual, non-participating, non-linked savings plan designed specifically for children. The policy aims to have an ample corpus to fulfill a child’s higher education and other essential needs, as confirmed by the country’s largest life insurance provider. The minimum sum assured (SA) for this policy is ₹2 lakh, with no specified maximum SA, subject to underwriting decisions.

The policy term, according to the Corporation’s statement, will enable the accumulation of a corpus through guaranteed additions at the rate of ₹80 per thousand basic sum assured at the end of each policy year from inception until the end of the policy term, provided the policy remains in force.

Life insurance corporation | new scheme , Image credit : Reuters

The minimum age at entry is 30 days (completed), while the maximum is 13 years (last birthday). At maturity, the minimum age is 18 years (last birthday), and the maximum is 25 years (last birthday).

For limited premium payment, the minimum policy term is 10 years, and for single premium payment, it is 5 years. The maximum policy term for both limited and single premium payment is 25 years. However, for policies obtained 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.

LIC stated, “On the date of maturity, the sum assured, along with guaranteed additions, will be payable for an in-force policy. The maturity amount can also be received through settlement options in installments over 5, 10, or 15 years.”

In the event of the life assured’s demise during the policy term under an in-force policy, the payable guaranteed additions for the full policy year in the year of death will be, it added.

If an in-force policy is surrendered, the guaranteed additions for the policy year in which the policy is surrendered will be added on a proportionate basis, in proportion to the completed months for the Policy Year in which the policy is surrendered.

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 payment of an additional premium.

(source: thehindubusinessline)