LIC Scheme: The increasing inflation has made it challenging for ordinary people to manage the significant expenses related to their children’s education and marriage. If you are seeking a secure investment option for your children, free from the uncertainties of the stock market, consider the “Amritbal” plan (Plan No. 774) offered by the Life Insurance Corporation of India (LIC). This plan stands out for its guaranteed returns, providing a set bonus of Rs 80 for every Rs 1,000 sum assured.
Key points of the scheme
Assured returns Unlike traditional insurance plans where returns are linked to company profits, LIC Amritbal relies on “Guaranteed Additions.” This implies that a fixed bonus of Rs 80 per Rs 1,000 sum assured is credited to your account annually throughout the policy term, ensuring stability amidst financial market fluctuations.
Investment suitability for newborns
Tailored for securing children’s futures, this policy allows investment commencement from as early as 30 days old up to 13 years old. You can customize the maturity period, ranging from 18 to 25 years, aligning with your financial goals such as funding college fees at 18 or supporting a business venture at 25. Premium payment options include a single installment or shorter durations of 5, 6, or 7 years.
Studies will not stop even if something untoward happens
The biggest fear for any parent is what will happen to their children in their absence. To alleviate this fear, LIC has introduced the excellent “Premium Waiver Rider” feature in the Amritbal Plan. If an unfortunate event occurs to the proposer (parent) during the policy term, the child’s policy will not be terminated. All future premiums will be waived, and the plan will continue without interruption. Upon completion, the child will receive the full maturity amount.
You will get a large lump sum fund at the right age
When your child reaches a crucial stage in life, they will receive a substantial lump sum from LIC. This fund includes your basic sum assured (basic sum assured) along with a guaranteed bonus of ₹80 per thousand accrued annually. This money can easily cover major expenses like studying at a foreign university or a wedding. This plan is a smart financial move to lay the foundation for a secure future in your child’s name.