Exploring LIC Amrit Bal Plan: Benefits and Features

Introduction

When it comes to securing our future and ensuring financial stability for our loved ones, investing in insurance plans is often a popular choice. Life Insurance Corporation of India (LIC), being a trusted name in the insurance sector, offers a variety of plans to cater to different needs. One such plan that has gained popularity is the LIC Amrit Bal Plan. This plan is designed to provide financial protection to families in the unfortunate event of the policyholder’s demise. Let us delve deeper into the benefits and features of this plan.

Understanding LIC Amrit Bal Plan

The LIC Amrit Bal Plan is a non-linked, participating, individual insurance plan that offers both protection and savings features. It provides financial assistance to the family of the policyholder in case of untimely death during the policy term. Additionally, the plan also ensures that the policyholder receives a lump sum amount at the end of the policy term, provided they survive the term.

Key Features of LIC Amrit Bal Plan

1. Dual Benefit: The plan offers a dual benefit of financial protection in case of the policyholder’s demise and a maturity benefit if the policyholder survives the term.

2. Flexible Premium Payment Options: Policyholders can choose between regular premium payment mode or limited premium payment mode based on their convenience.

3. Loan Facility: In case of financial emergencies, the policyholder can avail a loan against the policy’s surrender value.

4. Death Benefit: In the unfortunate event of the policyholder’s demise during the policy term, the nominee receives the sum assured along with any bonuses declared by LIC.

5. Maturity Benefit: If the policyholder survives the policy term, they receive the maturity benefit, which includes the sum assured and any bonuses.

6. Participating Plan: The plan participates in the profits of LIC, which means policyholders are entitled to receive a share of the profits in the form of bonuses.

7. Surrender Value: The plan acquires a surrender value after the payment of a few premiums, which can be helpful in times of need.

Benefits of LIC Amrit Bal Plan

1. Financial Security: The plan provides financial security to the policyholder’s family by offering a lump sum amount in case of the policyholder’s demise.

2. Savings: The plan also acts as a savings tool, ensuring that the policyholder receives a maturity benefit if they survive the policy term.

3. Tax Benefits: Policyholders can avail tax benefits under Section 80C of the Income Tax Act, 1961, for the premiums paid. Additionally, the maturity amount is also tax-free under Section 10(10D).

4. Bonuses: The plan offers bonuses declared by LIC, which enhances the overall returns on the investment.

FAQs about LIC Amrit Bal Plan

1. Who is eligible for LIC Amrit Bal Plan?
   Any individual between the ages of 8 years and 55 years can avail this plan.

2. What is the policy term for LIC Amrit Bal Plan?
   The policy term ranges from 10 years to 25 years, depending on the policyholder’s preference.

3. Can I surrender the LIC Amrit Bal Plan?
   Yes, the plan acquires a surrender value after the payment of a few premiums, which can be availed by the policyholder.

4. Are there any riders available with this plan?
   Yes, policyholders can opt for riders like accidental death benefit rider, premium waiver benefit rider, etc., by paying an additional premium.

5. How are premiums calculated for LIC Amrit Bal Plan?
   Premiums are calculated based on factors like age, sum assured, policy term, premium payment mode, etc.

6. Can I take a loan against the LIC Amrit Bal Plan?
   Yes, policyholders can avail a loan against the surrender value of the policy after a certain period.

7. What happens if I miss a premium payment?
   Policyholders are usually given a grace period to pay the premium. If the premium is not paid even within the grace period, the policy may lapse.

8. Is the maturity amount guaranteed in LIC Amrit Bal Plan?
   The maturity amount consists of the sum assured and any bonuses declared by LIC, which are not guaranteed.

9. Can I alter the sum assured during the policy term?
   The sum assured cannot be altered once the policy is issued. However, certain changes may be allowed based on specific conditions.

10. How can I check the status of my LIC Amrit Bal Plan?
    Policyholders can check the status of their plan online through the LIC portal or by visiting the nearest LIC branch.

In conclusion, the LIC Amrit Bal Plan is a comprehensive insurance plan that provides financial protection and savings benefits to policyholders. It is essential to carefully understand the features, benefits, and terms of the plan before investing to ensure financial security for yourself and your loved ones.