On 1st October 2024, LIC of India launched a new child-focused savings and protection plan – the LIC Amritbaal Plan (Table No. 774). This is a non-linked, non-participating, individual life insurance savings plan designed to help parents build a financial corpus for their child’s higher education, marriage, or any other future milestones.
What makes this plan stand out is its guaranteed additions and flexibility in premium payment options. You can choose between Limited Premium Payment (5, 6, or 7 years) or Single Premium Payment, based on your convenience.
Key Highlights of LIC Amritbaal Plan 774
- 🎓 Child-focused savings plan with guaranteed benefits.
- 💰 Guaranteed Additions of ₹80 per ₹1000 Sum Assured every year.
- 🛡️ Risk cover on the child’s life during the policy term.
- 🔁 Choose Limited Premium (5, 6, 7 years) or Single Premium.
- 📆 Maturity benefit available at age 18 to 25.
- 🧾 Income tax benefits under Sections 80C and 10(10D).
- 🧒 Premium Waiver Rider available for enhanced security.
- 🔐 Guaranteed maturity benefits, not linked to market.
- 💳 Available online via LIC’s new digital platform (pay via UPI, card, net banking).
Who Can Buy LIC Amritbaal Policy 774?
| Parameter | Eligibility |
|---|---|
| Minimum Entry Age | 30 days (Completed) |
| Maximum Entry Age | 13 years (Last birthday) |
| Minimum Maturity Age | 18 years |
| Maximum Maturity Age | 25 years |
| Premium Payment Term | 5, 6, or 7 years (Limited) / Single premium (One-time) |
| Policy Term | 5 to 25 years |
| Premium Modes | Yearly, Half-Yearly, Quarterly, Monthly, Single |
| Minimum Sum Assured | ₹2,00,000 |
| Maximum Sum Assured | No Limit |
Guaranteed Additions (GA)
LIC Amritbaal Policy offers Guaranteed Additions at ₹80 per ₹1,000 Sum Assured for each full policy year throughout the term. These additions are accrued annually and paid on maturity or on death (whichever is earlier).
📌 Example:
For a sum assured of ₹5,00,000 and policy term of 20 years, Guaranteed Additions would be:
bashCopyEdit₹5,00,000 / ₹1,000 = 500 units
500 × ₹80 = ₹40,000/year
For 20 years → ₹40,000 × 20 = ₹8,00,000 Guaranteed Additions
Premium Payment Options
1️⃣ Single Premium: Pay once and relax for the entire policy term.
2️⃣ Limited Premium Payment:
Pay premiums for 5, 6, or 7 years, and enjoy benefits till maturity.
🏷️ Premium Rebate:
| Mode of Payment | Rebate (%) |
|---|---|
| Yearly | 2% |
| Half-Yearly | 1% |
| Quarterly/Monthly | NIL |
Benefits of LIC Amritbaal Plan
✅ Maturity Benefit
On survival of the child till maturity:
- Sum Assured on Maturity (Basic Sum Assured)
- + Accrued Guaranteed Additions
🔹 Maturity Amount = Basic Sum Assured + GA
✅ Death Benefit
👉 Death Before Commencement of Risk:
If the child dies before risk commencement:
- Paid Premium (excluding taxes, riders, etc.) is refunded.
👉 Death After Commencement of Risk:
- Sum Assured on Death + Accrued Guaranteed Additions
- Where Sum Assured on Death is:
| Premium Type | Option | Sum Assured on Death |
|---|---|---|
| Limited Premium | 1 | Higher of (7 × annual premium) or Basic Sum Assured |
| Limited Premium | 2 | Higher of (10 × annual premium) or Basic Sum Assured |
| Single Premium | 3 | Higher of (1.25 × single premium) or Basic Sum Assured |
| Single Premium | 4 | Higher of (10 × single premium) or Basic Sum Assured |
Note: Risk starts after 2 years from policy purchase or when the child turns 8, whichever is earlier.
📊 Example Illustration of LIC Amritbaal Plan 774
Let’s take an example of Mr. Arjun, a 35-year-old father, who purchases this plan for his 2-year-old son with the following details:
| Particulars | Value |
|---|---|
| Child’s Age | 2 years |
| Sum Assured | ₹5,00,000 |
| Policy Term | 20 years |
| Premium Paying Term | 7 years |
| Payment Mode | Yearly |
| Annual Premium (Approx.) | ₹36,000 |
| Option Chosen | Limited Premium – Option 1 (7× Premium) |
📆 Policy Timeline:
| Year | Age of Child | Premium Paid | Guaranteed Additions | Total Accumulated GA |
|---|---|---|---|---|
| 2024 | 2 | ₹36,000 | ₹40,000 | ₹40,000 |
| 2025 | 3 | ₹36,000 | ₹40,000 | ₹80,000 |
| 2026 | 4 | ₹36,000 | ₹40,000 | ₹1,20,000 |
| 2027 | 5 | ₹36,000 | ₹40,000 | ₹1,60,000 |
| 2028 | 6 | ₹36,000 | ₹40,000 | ₹2,00,000 |
| 2029 | 7 | ₹36,000 | ₹40,000 | ₹2,40,000 |
| 2030 | 8 | – | ₹40,000 | ₹2,80,000 |
| … | … | – | ₹40,000/year | … |
| 2044 | 22 | – | ₹40,000 | ₹8,00,000 |
🎯 Maturity at Age 22 (2044):
- Basic Sum Assured: ₹5,00,000
- Guaranteed Additions: ₹8,00,000
- Total Maturity Amount: ₹13,00,000 (Tax-Free)
✅ Premium Waiver Benefit (PWB)
This rider ensures that in case of death of the parent/guardian, all future premiums are waived, and the child continues to receive all benefits as per plan.
Eligibility: Proposer’s age should be between 18 to 55 years and the sum of proposer’s age and policy term should not exceed 70 years.
📝 Settlement Option
Maturity or death benefits can be received in installments over 5, 10, or 15 years – ideal if you’re planning for higher education costs spread across years.
🔄 Additional Policy Features
| Feature | Description |
|---|---|
| Loan Facility | After 1 year (Limited Premium) / 3 months (Single Premium) |
| Lock-in Period | 1 year |
| Revival | Within 5 years of last unpaid premium |
| Backdating Allowed | Yes, within same financial year (not before launch date) |
| Assignment & Nomination | Permitted |
| Cooling-off Period | 30 days from receiving policy document |
📜 Tax Benefits
- ✅ Premiums qualify for deduction under Section 80C.
- ✅ Maturity & death benefits are tax-free under Section 10(10D).
💬 Final Thoughts
LIC Amritbaal Plan 774 is one of the most promising child investment plans in 2024–25. It combines guaranteed returns, life cover, and flexible premium options tailored for your child’s future goals like education, career, or marriage. The plan provides peace of mind to parents, ensuring financial security for their children even in their absence.
Whether you’re looking to invest once or for a few years, this plan offers strong returns, zero market risk, and absolute safety—making it a smart and responsible choice for your child.
