The country's largest insurer, Life Insurance Corporation (LIC), today launched a new product in the child plan space that aims to meet educational and other needs of children.
Jeevan Ankur is specially designed to meet the educational and other needs of the child, LIC said.
It is the most suitable insurance plan for parents who have a child aged up to 17 years, for this plan ensures that their responsibilities are met under all circumstances, without depending on anyone else, it said.
The plan covers the risk on the life of the parent and the named child shall be the nominee under the plan, it said.
In the event of the unfortunate death of the parent during the policy term, the basic sum assured is payable immediately on in-force policies, LIC Senior Divisional Manager R K Jha said.
In addition, an income benefit equal to 10 per cent of the basic sum assured is payable to the nominee child from the policy anniversary coinciding with or immediately after the death till the end of policy term, it said.
This will ensure the continuity of the child's education without any additional burden, it said.
Not only this, it said, the nominee child will also get a lumpsum amount equal to the basic sum assured on the predefined maturity date of the policy along with loyalty additions, if any, to support higher education or a start in professional life.