A new insurance plan for children, LIC’s Amritbaal 8% GUARANTEED Insurance Plan, was introduced on 17th Feb 2024. Does this policy really offer 8% returns?
LIC’s Amritbaal is a Non-Linked, Non-Participating, Individual, Savings, Life Insurance plan. Hence, it is a traditional plan. The plan is available both online and offline.
The first question you have to ask yourself before we go further is – Is life insurance required for a child? Life insurance is required for those who have financial dependents and are also earning members. In simple terms, you don’t need life insurance if no one is financially dependent on you or you are financially independent enough that your absence may not impact your financial dependence.
However, life insurance companies even though the primary business is to offer life insurance, offer us INSURANCE + INVESTMENT products. Hence, the purpose of life insurance on a kid’s name is basically to sell you an INSURANCE + INVESTMENT product, not a pure…