The policyholder/life assured shall have the option to receive the maturity benefit in lump sum as specified above and/or in installments (settlement option).
LIC has recently announced a special savings-cum-insurance plan for parents intending to build a corpus for their kids. The scheme called LIC Amritbaal is essentially a non-linked, non-participating, individual savings life insurance plan that looks to create a sizable sum through guaranteed additions at the rate of Rs 80 per thousand in basic sum assured at the end of each policy year from the inception till the end of the policy term.
Here are the policy terms:
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Minimum and maximum age at entry:30 days completed and 13 years, respectively
Minimum and maximum age at policy maturity: 18 years and 25 years, respectively
Minimum policy term for limited premium payment: 10 years
Minimum policy and maximum term for a single premium payment: 5 years and 25 years, respectively.
Benefits:
Death benefit:
In case of death of the life assured after the commencement of the risk but during the plan term, the nominee shall be paid the sum assured on death together with accrued guaranteed additions for in-force policy.
The sum assured on death under the options are as below:
Under Limited Premium payment:
i. “Sum Assured on Death” applicable for Option I shall be higher of 7 times of annualised premium or basic sum assured.
ii. “Sum Assured on Death” applicable for Option II shall be higher of 10 times of annualised premium or the basic sum assured.
The death benefit under limited premium payment shall not be less than 105 per cent of total premiums paid up to the date of death.
Under Single Premium payment:
i. “Sum Assured on Death” applicable for Option III shall be higher of 1.25 times of single
premium or basic sum assured.
ii. “Sum Assured on Death” applicable for Option IV shall be 10 times of a single premium.
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Maturity Benefit:
In case the life assured outlives the policy term and if the policy is in-force, “sum assured on maturity shall be payable along with accrued guaranteed additions for in-force policy, shall be payable; where sum assured on maturity is equal to the basic sum assured. The policyholder/life assured shall have the option to receive the maturity benefit in lump sum as specified above and/or in installments (settlement option).
Guaranteed Additions for in-force policy:
Under an in-force policy, the guaranteed additions shall accrue at the rate of Rs. 80 per thousand basic sum assured at the end of each policy year from the inception till the end of the policy term.
On death of life assured during the policy term under an in-force policy, the guaranteed additions in the year of death shall be payable for a full policy year.
In case of the surrender of an in-force policy, the guaranteed additions for the policy year in which the policy is surrendered will be added on a proportionate basis in proportion to the completed months for the policy year in which, the policy is surrendered.
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Option to choose the premium waiver benefit rider:
This rider can be opted in a case when the person assured is a minor. Further, as per the fact document of the policy, the rider term shall be the outstanding premium paying term of the base policy as on the date of opting for this rider or (25 minus age of the minor life assured at the time of opting this rider), whichever is lower.
If this rider is opted for, on the death of the proposer, the payment of premiums in respect of the base policy falling due on and after the date of death till the expiry of rider term shall be waived.
