The Life Insurance Corporation of India (LIC) has announced the launch of Amritbaal, a traditional endowment policy- non-linked, non-participating - aimed at parents who are looking to build a higher education for their children over the long term.

The minimum age at entry (for the child) is 30 days, while the upper limit is 13 years. At maturity, the minimum age is 18 years while the maximum is 25 years, LIC said in an official release.

“The plan is specifically designed to have an adequate corpus to meet the higher education and other needs of the child. It facilitates accumulation of corpus through guaranteed additions at the rate of Rs 80 per thousand basic sum assured at the end of each policy year from the inception till the end of policy term provided policy is in force,” the life insurance behemoth said.

The guaranteed return policy comes with shorter premium payment terms of five, six and seven years. The minimum policy tenure for limited premium pay policies and single premium policies is 10 years and five years respectively. The maximum policy tenure for single and limited premium pay policies is 25 years.

The minimum sum assured is Rs 2 lakh, but there is no cap on the maximum sum assured. “On the date of maturity, sum assured along with guaranteed additions will be payable…maturity amount can also be received through settlement options in installments over five, 10 or 15 years,” LIC said.

Like other savings plans offered by the company, policyholders can avail of loans under the policy. LIC is offering the product through its offline channels, that is agents or distributor banks, as also directly through the company website.