LIC Amritbaal (current Plan No. 774, UIN 512N365V02) is a non‑linked, non‑participating, individual savings life insurance plan for children. The plan is designed to build an adequate corpus for a child’s higher education and other major milestones through guaranteed additions and a choice of single or limited‑pay premiums.
Key features
- Non‑linked, non‑participating savings plan with guaranteed additions, not dependent on market performance or bonuses.
- Specifically structured as a child plan to target higher education, professional courses, start‑up capital or marriage needs.
- Guaranteed Additions at a fixed rate (commonly ₹80 per ₹1,000 of Basic Sum Assured per policy year in current versions), added throughout the policy term and payable on maturity or death.
- Flexible premium payment: Single premium or limited‑pay options (typically 5, 6 or 7 years) to front‑load contribution while parents are in peak earning years.
- Life cover on the child with options in death‑benefit structure depending on premium type and option chosen (e.g., higher multiple of premium or Basic Sum Assured).
- Available both online and offline through LIC channels, offering ease of purchase and servicing.
Eligibility and basic parameters
Indicative conditions based on current brochures and calculators (you can fine‑tune from latest LIC PDF when publishing).
- Life Assured: Child.
- Minimum entry age of child: 0 years (30 days completed).
- Maximum entry age of child: 13 years (last birthday).
- Minimum maturity age: 18 years (last birthday).
- Maximum maturity age: 25 years (last birthday).
- Policy term: Typically 5 to 25 years, chosen so that maturity falls between age 18 and 25 of the child.
- Minimum Basic Sum Assured: ₹2,00,000 (in multiples of ₹1,000).
- Maximum Basic Sum Assured: No upper limit, subject to underwriting.
- Premium payment options:
Benefits at a glance
Maturity benefit
If the child (life assured) survives to the maturity date and the policy is in force, LIC pays:
- Sum Assured on Maturity (usually equal to Basic Sum Assured), plus
- Accrued Guaranteed Additions for all policy years.
This lump sum is targeted as a ready corpus for higher education or other planned goals between ages 18 and 25.
Death benefit
If the life assured (child) dies during the policy term, the death benefit depends on the premium option and benefit option chosen, but broadly includes:
- Sum Assured on Death (which may be defined as a multiple of Basic Sum Assured or premium), plus
- Accrued Guaranteed Additions till date of death.
Exact multiples differ for Single‑Premium and Limited‑Pay options (for example, 1.25 or 10 times single premium, or Basic Sum Assured, depending on chosen option), so you should reference LIC’s latest sales brochure for precise wording.
Who should consider LIC Amritbaal?
- Parents and guardians who want to systematically build a guaranteed corpus for a child’s higher education, professional studies or start‑up plans.
- Families preferring guaranteed additions and clear maturity value instead of market‑linked volatility.
- Those who like short‑term premium commitments (5–7 years or one‑time single premium) but need coverage and accumulation to continue till the child is 18–25.
Example: Parents of a 5‑year‑old take a 15‑year Amritbaal with 7‑year limited premium, so premiums finish by the child’s age 12 while the corpus and guaranteed additions keep accumulating till age 20, aligning with graduation expenses.
Important points and disclaimers
- LIC Amritbaal is a non‑participating plan; returns are via fixed guaranteed additions only, not bonuses.
- Benefits, eligibility and parameters have been updated from older Plan No. 874 to current Plan No. 774; always use the latest LIC brochure and UIN details when advising clients.
- Actual premium and eligibility depend on child’s age, chosen sum assured, term, premium option and underwriting norms.
- Clients should review the official LIC Amritbaal sales brochure and policy document for full terms, conditions, exclusions and definitions.
- Tax treatment of premiums and benefits is subject to the Income‑tax Act (e.g., sections 80C and 10(10D)) and may change; personalised tax advice is recommended.