LIC Launched New LIC Amritbaal Child Plan

LIC Amritbaal Child Plan is a savings life insurance designed for children’s needs. Offering flexible terms,

It accumulates a corpus with guaranteed additions and provides various benefits, including death and surrender values.

What is the LIC Amritbaal Child Plan?

LIC of India introduced a new savings life insurance plan called LIC’s Amritbaal, designed for a child’s education and future needs.

Dr. Vivek Joshi inaugurated the launch, and the plan is available for purchase from February 17, 2024.

It offers guaranteed savings with easy entry starting from 30 days old up to 13 years old. You can choose short premium payment terms of 5, 6, or 7 years, and policy terms range from 10 to 25 years.

The sum assured starts at Rs. 2,00,000 with no maximum limit, and on maturity, you receive the sum assured along with guaranteed additions, payable in installments if preferred.

LIC‘s Amritbaal aims to simplify securing your child’s future. 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 the policy term provided the policy is in force.

Minimum Age at Entry	0 years (30 days completed).
Maximum Age at Entry	13 years (last birthday).
Minimum Age at Maturity	18 years (last birthday).
Maximum Age at Maturity	25 years (last birthday).
Short Premium Payment Term	Choose from 5, 6, or 7 years.
Minimum Policy Term for Limited Premium Payment	10 years.
Minimum Policy Term for Single Premium Payment	5 years.
Minimum Sum Assured	Rs 2 lakh.
Maximum Basic Sum Assured	No Limit.

Unique Feature of LIC Amritbaal Child Plan

Target Age Group: 18 to 25 years old.

Coverage Areas: Education, Marriage, and Other Needs.

Maturity Benefit Options:

• Lumpsum payment.
• Conventional installments.

Policy Term Options:

• Single Premium: Minimum 5 years.
• Limited Premium: Minimum 10 years.

Premium Payment Terms:

• Limited: 5, 6, or 7 years.
• Single: One-time payment.

Minimum Entry Age: 30 days after birth. This policy is designed to provide financial support for young adults aged 18 to 25, covering their essential needs like education and marriage. It offers flexibility in maturity benefits with options for a lump sum or conventional installments. Policyholders can choose between single or limited premium payments, with varying terms. The coverage starts as early as 30 days after birth, ensuring early financial planning for the future.

Eligibility Condition and Restriction For LIC Amritbaal Child Plan

This plan is open to the tiniest members of the family, kicking in from just 30 days after birth up to the ripe age of 13.

The party doesn’t end until you hit 18, but no later than 25. If you’re a slow and steady saver, the plan goes on for at least 10 years or if you are not ready for a long time investment so you can make a one-time payment, a cool 5 years is all it takes.

Starting the money game requires a minimum of Rs. 2,00,000 You can save as much as you want with this plan they decide based on some smart rules.

You start with Rs. 25,000, and it goes up to Rs. 24,00,000. If you’re thinking even bigger, after Rs. 24,00,000, it jumps up by Rs. 50,000. So, whether you’re starting with a little or dreaming big.

Benefits of LIC Amritbaal Child Plan

Maturity Benefit: When you survive until the maturity date, the ‘Sum Assured on Maturity’ along with guaranteed additions will be yours, given the policy is active. This sum is equal to the Basic Sum Assured.

Death Benefit Options: You get to pick your ‘Sum Assured on Death’ depending on your payment choice either Limited Premium or Single Premium. Once chosen, it stays that way, affecting premiums and benefits.

Limited Premium Payment Options:

Option I: Higher of 7 times Annualized Premium or Basic Sum Assured.
Option II: Higher of 10 times Annualized Premium or Basic Sum Assured.

Single Premium Payment Options:

Option III: Higher of 1.25 times Single Premium or Basic Sum Assured.
Option IV: 10 times Single Premium.

Minimum Guaranteed Death Benefit: For Limited Premium (Options I & II), it won’t be less than 105% of ‘Total Premiums Paid’ till the date of death. ‘Total Premiums Paid’ excludes extras and taxes.

Special Case for Minors: If the life assured is below 8 years old and passes away before the risk starts, a refund of paid premiums (without interest) occurs.

Guaranteed Additions: For active policies, Rs. 80 per thousand Basic Sum Assured is added every year until the end of the policy term.

Guaranteed Additions on Death: If the life assured passes away during the policy term, the Guaranteed Additions for the full policy year are paid out.

Optional Rider Benefit: There’s an extra option called LIC’s Premium Waiver Benefit Rider, available for Limited Premium (Options I & II) by paying an additional premium. This rider waives the premiums if the proposer (policyholder) dies during the rider term.

Waiver Benefit: If the proposer (policyholder) with the rider dies during the rider term, the premiums for the base policy are waived until the rider term ends.

Surrender Value for LIC Amritbaal Child Plan

You can surrender the policy anytime during its term if you’ve paid premiums for at least two full years.
The surrender value you get will be the higher Guaranteed Surrender Value (GSV) and Special Surrender Value (SSV).

Guaranteed Surrender Value (GSV):

GSV is calculated by adding the total premiums paid multiplied by the GSV factor and accrued Guaranteed Additions multiplied by their GSV factor.
GSV factors depend on policy terms and the year of surrender.
During the first three policy years, it’s 75% of the Single Premium Paid.
After the third policy year, it’s 90% of the Single Premium Paid.

Special Surrender Value (SSV):

SSV is the Basic Sum Assured multiplied by the ratio of premiums paid duration to the originally payable period, plus accrued Guaranteed Additions, all multiplied by the Special Surrender Value Factor.

SSV is the sum of the Basic Sum Assured and accrued Guaranteed Additions, multiplied by the applicable Special Surrender Value factor.

Last Year’s Surrender:

If surrendered in the last policy year before maturity, the value is the discounted value of the maturity claim, which includes the Sum Assured on Maturity and accrued Guaranteed Additions for an in-force policy or Maturity Paid-up Sum Assured and accrued Guaranteed Additions for a paid-up policy.

Other Important Conditions in the LIC Amritbaal Child Plan

Loan:

Limited Premium Payment (Option I & II): You can borrow money from your policy after paying premiums for at least 2 full years.
Single Premium Payment (Option III & IV): You can take a loan anytime after 3 months from when your policy is issued or after the free-look period ends, whichever is later.

Revival:

If you miss paying premiums, you have a chance to revive your policy within 5 years of the first unpaid premium by paying all the due premiums.

Alterations:

The following alterations can be allowed in the LIC’s Amritbaal during the policy term on request of the proposer/life assured.

Any change not affecting premium rates and benefits.
Reducing the policy term with some restrictions.
Adding LIC’s Premium Waiver Benefit Rider, but not applicable if the plan is sold through specific channels.

Nomination and Assignment:

Nomination and assignment are possible as per the Insurance Act of 1938 after the policy is vested in the name of the life assured.

Back Dating:

Backdating is allowed within the same financial year, but not before the plan’s launch date.

Suicide Clause:

If the life assured commits suicide within 12 months from the policy’s start or revival, only the Unit Fund value in the policy will be paid to the nominee.

Free Look Period:

If you’re unhappy with your policy’s terms and conditions, you can return it within 30 days of receiving the electronic or physical copy, stating your reasons.

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Conclusion:

LIC’s Amritbaal is a child-focused savings life insurance plan offering guaranteed savings for education and future needs.

With easy entry from 30 days old up to 13 years old, it provides flexible premium payment and policy terms.

The plan aims to accumulate a corpus through guaranteed additions. Maturity benefits include a lump sum or conventional installments.

Additionally, it offers death benefits, optional riders, and surrender values. The policy accommodates alterations, and nominations, and has a free look period for customer satisfaction.

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