The Life Insurance Corporation of India (LIC) has launched Amritbaal, a traditional endowment policy - non-linked, non-participating - aimed at parents who are looking to build a higher education for their children over the long term.
The minimum age at entry (for the child) is 30 days, while the upper limit is 13 years. At maturity, the minimum age is 18 years while the maximum is 25 years, LIC said in an official release.
“The plan is specifically designed to have an adequate corpus to meet the higher education and other needs of the child. It facilitates accumulation of corpus through guaranteed additions at the rate of INR80 per thousand basic sum assured at the end of each policy year from the inception till the end of policy term provided policy is in force,” said the life insurer.
The guaranteed return policy comes with shorter premium payment terms of five, six and seven years. The minimum policy tenure for limited premium pay policies and single premium policies is 10 years and five years respectively. The maximum policy tenure for single and limited premium pay policies is 25 years.
The minimum sum assured is INR2 lakh and no limit for the maximum basic sum assured. On the date of maturity, the sum assured on maturity along with guaranteed additions will be payable for an in-force policy. "Maturity amounts can also be received through settlement options in instalments over five, 10, or 15 years," said LIC in the press release.
The policyholder has the option to choose "sum assured on death" as per the two options available under each single premium and limited premium payment.
During the risk cover period, for an in-force policy, the death benefit payable will be "sum assured on death" along with accrued guaranteed additions.
LIC's premium waiver benefit rider is available by paying an additional premium subject to the eligibility conditions.