The Life Insurance Corporation of India (LIC), which is pulling out unsustainable high yielding products, will be discontinuing Bal Vidya, a policy for children, in a few days from now.
The Bal Vidya scheme had guaranteed return of eight per cent and in certain cases 9.8 per cent.
LIC has decided to take the scheme off the shelf from March 31 along with another high yielding product, Bima Nivesh. The company will also be discontinuing New Jeevan Shree, launched in 2002.
Bal Vidya offered guaranteed return of Rs 70 per Rs 1,000 of sum assured and was targeted at the higher strata of the population. With a one-time premium payment of around Rs 2.4 lakh, the child would get regular returns of Rs 1,000 per month after admission to school.
The monthly return would increase to Rs 2,000 when the child attained 18 years after which he would get a lumsum payment of Rs 1 lakh.
Between 18 and 24 years of age, the nominee would get a return of Rs 4,000 per month. At 24, the nominee would get another payment of Rs 2.5 lakh on policy maturity.
