Amritbaal Plan is an LIC plan that includes a one-time investment with guaranteed returns and insurance coverage for life. The policy belongs to that category of non-linked, non-participating plans of savings. Ideal for parents seeking a guaranteed avenue for systematically building a corpus for their child’s future needs regarding education or various financial obligations at hand.
An analysis of the characteristics and benefits of the program in terms of suitability for individuals who prefer low-risk investments over the long term will follow.
A look at the LIC Amritbaal Plan
LIC Amritbaal launched Plan No. 874 in 2023, in which the policyholder has the option to make a Single Payment. An individual holding a policy can pay once, right at the commencement of the period for which the insurance is to remain in force, as one aggregated amount in lieu of payments spread over several years as fees. This plan brings about a more convenient expenditure due to the removal of monthly payments with assured development.
The plan is for people who want to be sure of making money and giving their children financial protection. When the insurance period is over, endowment plans pay out a big sum maturity benefit that includes the base amount secured and any collected guaranteed raises.
Key Features of the LIC Amritbaal Plan
From LIC Amritbaal, you can make single or limited monthly payments. With the single premium choice, you only have to pay once. With the limited premium option, you can spread out your payments over 5 to 7 years, based on how long your insurance lasts. This flexible payment plan works well for many types of financial planning.
Parents can choose a policy term between 10 and 25 years to connect the plan’s development with important life events like college or becoming an adult. The plan is open to a wide range of buyers and people who want more covering, with no upper limit on the amount covered and a minimum of INR 2 lakh.
Death and Getting Older Are Good
When the insurance ends, the owner gets the amount covered plus promised adds. The increases are based on INR 80 for every 1,000 of the total amount assured in an insurance year. With a sum covered of INR 5 lakh and a term of 20 years, the beneficiary could get INR 8 lakh in guaranteed increases and INR 13 lakh at the end of the term.
The death benefit from LIC Amritbaal covers clients financially if they pass away during the insurance time. The amount of the death benefit varies on the premium you choose. Most single-premium plans have death benefits that are 1.25 times the payment or the basic amount covered, whichever is greater. Giving the policyholder’s family the right kind of help makes it a good long-term insurance choice.
Flexibility and Extra Perks
The flexible features of LIC Amritbaal make it more appealing:
Settlement Option: Policyholders can get their money at maturity in 5, 10, or 15-year chunks. This tool helps you plan for ongoing costs like college fees or other regular money needs. Being able to get growth benefits in the form of monthly payments makes sure that funds are available when they are needed.
Facility for Loans: People with single premium plans can borrow against their insurance after three months, or one year for limited premium plans. This clause lets you get cash during emergencies without giving up the insurance. This way, you can keep the benefits of the investment while meeting short-term financial needs.
The Premium Waiver Perk A rider lets you skip paying future payments if the person who bought the insurance (usually a parent) dies while it is still good. If the main earner stops paying into the insurance, this rider will still protect the child’s future.