LIC Amritbaal Policy: The Life Insurance Corporation (LIC) has introduced the Amritbaal policy for children, a non-linked, non-participating, individual savings and life insurance plan that parents can purchase in their children’s names. It is specifically designed to help parents build sufficient funds for their children’s higher education.
Here are the complete details of this scheme.
Investment Age Limits
The policy allows entry from a minimum age of 30 days to a maximum age of 13 years. Maturity is permitted between the ages of 18 years and 25 years. Notably, the minimum policy term for a single premium is 5 years, and for limited premium payment, it is 10 years. The maximum policy term for both limited and single premium payments is 25 years.
Installment Options for LIC Amritbaal Policy
Premium payments for the LIC Amritbaal Policy can be made monthly, quarterly, semi-annually, or annually. The minimum installment amounts are Rs 5000, Rs 15000, Rs 25000, or Rs 50000, respectively. Policyholders can select the ‘Sum Assured on Death’ from two options available under Single Premium and Limited Premium Payment. The choice should be made carefully based on the child’s needs, as premiums and benefits are determined by the chosen option and are not subject to subsequent changes.
Options for Premium Payment
For limited premium payment:
- Option 1: Higher the annual premium or seven times the basic sum assured.
- Option 2: Higher of 10 times the annual premium or basic sum assured.
For single premium payment:
- Option 1: Single premium or higher of 1.25 times the basic sum assured.
- Option 2: 10 times the single premium.
Loan Facilities against LIC Amritbaal Policy
Under Limited Premium Payment, a loan is available after payment of a minimum of two years’ premiums. For a single premium payment, the loan becomes available three months after the policy term’s completion or at any time after its expiry.
Also Read: Access Emergency Funds: Withdraw Rs 10,000 Without Sufficient Balance.