LIC of India has introduced a new plan called "LIC’s Amritbaal (Plan 874),” according to LIC Amritbaal press statement issued on February 16. This plan, launched by Dr Vivek Joshi, Secretary of Financial Services, Ministry of Finance, GOI, will be available for purchase starting from 17 February 2024.
LIC’s Amritbaal is a savings-oriented life insurance plan tailored to meet the educational and other needs of a child. It offers guaranteed additions of Rs 80 per thousand basic sums assured annually, provided the policy remains in force.
“LIC’s Amritbaal is an Individual, Savings, Life Insurance Plan. The plan is specifically designed to have an adequate corpus to meet the higher education and other needs of the child. It facilitates the accumulation of corpus through Guaranteed additions at the rate of Rs 80 per thousand basic sums assured at the end of each policy year from the inception till the end of Policy term provided policy is in force,” according to the LIC Amritbaal press statement.
The plan allows entry from birth (30 days completed) up to 13 years of age, with maturity ranging from 18 to 25 years. Premium payment terms of five, six, or seven years are available.
The minimum policy terms vary based on premium payment type, ranging from five to 10 years. The maximum policy term is 25 years, except for policies obtained through specific channels, which have a maximum term of 20 years.
The minimum sum assured is Rs 2 lakh with no maximum limit (conditions apply). At maturity, the sum assured along with guaranteed additions is payable. Settlement options are available for receiving the maturity amount over five, 10, or 15 years.
Death benefits include the sum assured along with accrued guaranteed additions during the risk cover period. Optional premium waiver benefit rider and rebates for high basic sum assured and online purchases are also available.
Loan facilities are provided during the policy term, and the plan is non-linked and non-participating. It can be purchased offline through agents or online via the LIC website.
LIC is offering rebates for choosing a high basic sum assured and for completing proposals through online sales channels, as stated in their press release.
Regarding the commencement of risk for children under eight years old, the product brochure explains that if the child's age is below eight years, the risk will start either two years from the policy's commencement date or at the policy anniversary coinciding with or immediately following the child turning eight, whichever comes earlier. For children aged eight years or older, the risk begins immediately upon policy issuance.
On January 20, 2024, LIC introduced an annuity plan called LIC Jeevan Dhara II, which is an individual savings-oriented deferred annuity plan.
