LIC Amritbaal Plan 874: An Insurance Policy For Kids That Helps In Higher Education; 10 Key Points To Know!

India's largest life insurer, LIC India has launced a new plan 874 called Amritbaal which helps parents secure the future of their children right from higher education to other needs. Some of the perks of this policy is that it offers Rs 80 per thousand basic sum assured throughout its tenure, while the basic sum is of Rs 2 lakh. LIC's Amritbaal is a Non-Linked, Non-Participating, Individual, Savings, Life Insurance plan.

Amritbaal is specifically designed to have an adequate corpus to meet the higher education and other needs of your child. It facilitates accumulation of corpus through Guaranteed Addition.

This is a non-participating product under which benefits payable on death or survival are guaranteed and fixed irrespective of actual experience. Hence the policy is not entitled to any discretionary benefits like bonus etc. or share in Surplus.

Here are key features of this plan:

1. This Plan can be purchased Offline through Licensed agents, Corporate agents, Brokers, Insurance Marketing Firms, Point of Sales Persons-Life Insurance (POSP-LI) / Common Public Service Centers (CPSC-SPV) as well as Online directly through website www.licindia.in.

2. Guaranteed Addition Rs 80 per thousand Basic Sum Assured throughout the Policy Term.

3. Option to choose Life Insurance coverage for your child as per the needs.

4. There is flexibility to choose this plan from Single Premium and Limited Premium Payment. One can also chose the maturity age from 18 to 25 years for the various needs of your child. Also, there is an option for payment of benefit in instalments. Apart from this, it has an option to choose Premium Waiver Benefit rider on payment of additional premium.

5. The minimum age entry for this plan is 30 days of a child, while maximum age entry is at 13 years (last birthday). The minimum age of maturity of the plan is 18 years, and maximum is of 25 years.

6. Further, the premium paymenr term is dividend into two categories -- 1) Limited Premium Payment: 5, 6 & 7 years; and 2) Single Premium Payment: Single Pay.

7. The basic sum assured in this plan is starting at minimum from Rs 2 lakh to Rs 24 lakh. But the maximum sum assured has no limit and is above Rs 24 lakh.

8. Date of commencement of risk: In case the age at entry of the Life Assured is less than 8 years, the risk will commence either 2 years from the date of commencement of the policy or from the policy anniversary coinciding with or immediately following the attainment of 8 years of age, whichever is earlier. For those aged 8 years or more at entry, risk will commence immediately i.e. from the Date of issuance of policy.

9. Date of vesting under the plan: The policy shall automatically vest in the Life Assured on the policy anniversary coinciding with or immediately following the completion of 18 years of age and shall on such vesting be deemed to be a contract between the Corporation and the Life Assured.

10. Death Benefit: The proposer shall have an option to choose "Sum Assured on Death". The options should be chosen carefully depending on your child's specific needs, as the premium & benefits under the plan shall vary as per the option chosen and the same shall not be altered later.