Buy LIC Amritbaal Children Policy: Securing Your Child’s Education and Future

As a parent, securing your child’s future is a paramount concern. Among the various financial tools available, life insurance plans designed specifically for children stand out for their comprehensive benefits. The LIC Amritbaal Children Policy is one such plan, tailored to address the educational and financial needs of children as they grow. This policy not only ensures financial security but also provides a robust foundation for your child’s future endeavors.

 

What is LIC Amritbaal Children Policy?

The LIC Amritbaal Children Policy is a non-linked, participating life insurance plan from the Life Insurance Corporation of India (LIC). It is designed to provide financial security to children through guaranteed benefits, including survival benefits, maturity benefits, and death benefits. This policy aims to cater to the various milestones in a child’s life, such as education, marriage, and other significant events.

Key Features of LIC Amritbaal Children Policy

1. Guaranteed Benefits: The policy ensures guaranteed payouts at crucial stages of your child’s life, helping cover educational expenses or other significant costs.
2. Death Benefit: In the unfortunate event of the policyholder’s demise, the policy provides a death benefit to the nominee, ensuring the child’s financial stability.
3. Maturity Benefit: At the end of the policy term, the maturity benefit is paid out, which can be utilized for higher education or starting a career.
4. Survival Benefit: Periodic payouts are made during the policy term, aiding in the child’s educational expenses.
5. Bonus Facility: Being a participating plan, it is eligible for bonuses as declared by LIC, which enhances the overall benefit.
6. Loan Facility: Policyholders can avail of loans against the policy, ensuring liquidity in times of need.
7. Premium Waiver: In the event of the policyholder’s untimely demise, future premiums are waved off, but the policy benefits continue as planned.

Benefits of LIC Amritbaal Children Policy

Educational Security

One of the primary reasons parents opt for the LIC Amritbaal Children Policy is to ensure their child’s education is financially secured. The policy’s survival benefits align with the educational milestones, providing necessary funds during critical phases such as high school and college.

Financial Protection

The policy acts as a financial safety net. In the unfortunate event of the policyholder’s death, the policy ensures that the child’s future remains financially secure, covering expenses for education, marriage, or other significant life events.

Tax Benefits

Policyholders can avail of tax benefits under Section 80C of the Income Tax Act. The premiums paid towards the policy are eligible for tax deductions, and the maturity proceeds are tax-free under Section 10(10D).

Flexibility in Premium Payment

LIC Amritbaal offers flexibility in premium payments, allowing policyholders to choose between monthly, quarterly, half-yearly, or yearly modes. This flexibility ensures that the policy remains affordable and fits into the financial planning of diverse families.

Frequently Asked Questions (FAQs)

Q1: Who can buy the LIC Amritbaal Children Policy? A: Any parent or grandparent can purchase this policy for their children or grandchildren. The entry age for the child ranges from 0 to 12 years.

Q2: What is the policy term for LIC Amritbaal Children Policy? A: The policy term ranges from 12 to 25 years, depending on the age of the child at the time of policy purchase.

Q3: What happens if I miss a premium payment? A: LIC provides a grace period of 30 days for yearly, half-yearly, and quarterly premium payments and 15 days for monthly payments. If the premium is not paid within the grace period, the policy may lapse, but it can be revived within a specified period.

Q4: Can I avail of a loan against this policy? A: Yes, policyholders can avail of loans against the policy once it acquires a surrender value.

Q5: What is the surrender value of the policy? A: The surrender value is the amount payable to the policyholder if they decide to terminate the policy before maturity. It depends on the premiums paid and the duration for which the policy has been in force.

Q6: How are bonuses calculated for this policy? A: The bonuses are declared by LIC based on the corporation’s performance and are added to the policy benefits. These bonuses enhance the overall payout upon maturity or in case of death.

Q7: Can I change the nominee for this policy? A: Yes, the policyholder can change the nominee at any time during the policy term by submitting a written request to LIC.

Q8: Are the maturity proceeds taxable? A: The maturity proceeds of the LIC Amritbaal Children Policy are tax-free under Section 10(10D) of the Income Tax Act, provided the premium does not exceed 10% of the sum assured.

Q9: Can I add riders to this policy? A: Yes, LIC offers additional riders that can be attached to the policy for enhanced coverage, such as accidental death and disability riders.

Q10: How can I check the status of my policy? A: Policyholders can check the status of their LIC Amritbaal Children Policy online through the LIC website or mobile app by logging into their account.

The LIC Amritbaal Children Policy is a comprehensive plan designed to secure the future of your child. With guaranteed benefits, flexible premium payment options, and significant tax advantages, this policy ensures that your child’s educational and financial needs are met, regardless of life’s uncertainties. By opting for this policy, you can provide a solid financial foundation for your child, enabling them to pursue their dreams without financial constraints. For more personalized advice and to understand how this policy can be tailored to your needs, it is advisable to consult with an experienced LIC agent.