This non-linked, non-participating life insurance plan can be invested in for children’s higher education. There is also an option of single premium in this plan.
LIC has introduced a new policy for children. Its name is ‘Amritbal’ scheme. Parents can invest in this scheme for their children’s higher education or their marriage. It is a non-linked, non-participating, individual, saving plan. This policy can be purchased for a child between 30 days to 13 years. The minimum age of the child at maturity is 18 years and the maximum age is 25 years. The minimum policy term is 5 years for single premium and 10 years for limited premium payment. The maximum term for limited and single premium payment is 25 years.
Facility to take maturity amount in installments
On maturity of the policy, the sum assured along with guarantee additions will be paid to the policyholder. There is also the option of settlement in installments during 5, 10 and 15 years. There are many premium payment options in this policy. These include monthly, quarterly, half yearly and annually. Thus the minimum installment will be Rs 5,000, Rs 15,000, Rs 25,000 or Rs 50,000. In this scheme there are two options for the proposer to choose the sum assured on death namely Single Premium and Limited Premium.
No changes allowed after option selection
If you are thinking of buying this policy for your children, then you will have to choose this option wisely. For this, it would be better to keep in mind the needs of the child and the premium. Once an option is selected, no subsequent changes will be allowed. In the first option, seven times the annual premium or the sum assured, whichever is higher, will be given. In the second option, 10 times the annual premium or basic sum assured will be given. In case of single premium, under the third option, 1.25 times of the single premium or basic sum assured will be available. In the fourth option, you will get 10 times the single premium.
Minimum cover amount Rs 2 lakh
The company has said that the minimum cover amount in this policy is Rs 2 lakh. There is no limit for maximum cover. For some time now, LIC’s focus has increased on non-participating plans. This plan, introduced keeping children in mind, is a non-participating plan. If you are thinking of investing for your children’s higher education or marriage, then this policy is an option.
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