LIC Launches A Non-Participating Product ‘Amritbaal’ For Children

The Life Insurance Corporation of India (LIC) has rolled out a new insurance product named ‘Amritbaal’. This announcement, made, introduces a Non-Linked, Non-Participating, Individual, Savings, Life Insurance Plan specifically tailored for the younger demographic. Here’s a detailed look at what ‘Amritbaal’ offers and how it stands to benefit its policyholders.

Overview of ‘Amritbaal’

‘Amritbaal’ emerges as a strategic financial instrument designed to support the educational and other significant needs of children. Starting from February 17, 2024, this plan will be accessible to potential policyholders, marking a pivotal step in LIC’s offerings catered towards the child segment.

Key Features of the Plan

The product boasts several notable features aimed at generating a substantial corpus for the child’s future needs. One of the highlights is the Guaranteed additions, promising an accrual of Rs 80 per thousand of the basic sum assured at the end of each policy year. This benefit is applicable throughout the policy term, provided the policy remains active.

Age and Term Specifications

• Minimum Entry Age: The plan is inclusive, with an entry age starting from as young as 30 days up to 13 years, making it accessible for a broad age group.
• Maturity Age: Policyholders can choose a maturity age between 18 to 25 years, aligning with crucial educational milestones.
• Policy Term: The minimum policy term is set at 10 years for Limited Premium Payment and 5 years for Single Premium Payment, with a maximum term extending up to 25 years. For policies obtained through POSP-LI/CPSC-SPV channels, the maximum term is capped at 20 years.
• Sum Assured: The plan starts with a minimum sum assured of Rs. 2,00,000, with no upper limit on the maximum basic sum assured, offering flexibility in coverage.

The Vision Behind ‘Amritbaal’

During a post-earnings press meet, LIC Chairman Siddhartha Mohanty highlighted the corporation’s intent to enrich its portfolio with non-participating products tailored for children. ‘Amritbaal’ is a testament to LIC’s commitment towards introducing innovative financial solutions that cater to the evolving needs of its clientele. This plan not only underscores LIC’s focus on the child segment but also its dedication to fostering a secure financial future for the younger generation.

Important takeaways for all competitive exams:

• LIC Chairperson: Siddhartha Mohanty;
• LIC Founder: Government of India;
• LIC Founded: 1 September 1956;
• LIC Headquarters: Mumbai.