The Life Insurance Corporation of India (LIC) has launched “Amritbaal”, an insurance plan for children.

The new “non-linked, non-participating, individual, savings, life insurance” plan is specifically designed to have an adequate corpus to meet the higher education and other needs of a child, India’s largest life insurer said. The minimum sum assured (SA) for this policy is ₹2 lakh and there is no maximum SA (subject to underwriting decision).

This policy will facilitate the accumulation of corpus through guaranteed additions at the rate of ₹80 per thousand basic sum assured at the end of each policy year from the inception till the end of the policy term, provided the policy is in force, per the Corporation’s statement.

The minimum and maximum age at entry are 30 days (completed) to 13 years (last birthday), respectively. The minimum and maximjum age at maturity are 18 years (last birthday) and 25 years (last birthday), respectively.

The minimum policy term for limited premium payment is 10 years and for single premium payment is 5 years.

The maximum policy term for both limited and single premium payment is 25 years. In case of policies procured through POSP-LI (point of sales persons -- life insurance) /CPSC-SPV (Common Public Service Centers - State Public Vehicle), the maximum policy term is 20 years.

“On date of maturity, the sum assured along with guaranteed additions will be payable for in-force policy. Maturity amount can also be received through settlement options in installments over 5, 10 or 15 years,” LIC said.

On the death of life assured during the policy term under an in-force policy, the guaranteed additions in the year of death will be payable for the full policy year, it added.

In case of surrender of an in-force policy, the guaranteed additions for the policy year in which the policy is surrendered will be added on proportionate basis in proportion to the completed months for the Policy Year in which policy is surrendered.

Under an in-force policy, premium waiver benefit rider can be opted for on the life of Proposer of policy (as the Life Assured is minor) by payment of additional premium.