LIC of India has introduced a powerful child insurance policy named LIC Amritbaal Plan 874, launched on 17th February 2024. This plan is specially designed to secure your child’s future needs, including higher education and marriage, while also offering life insurance protection. It is a non-linked, non-participating, savings-oriented life insurance plan with guaranteed additions.
Whether you’re planning early or starting late, LIC Amritbaal offers flexible premium payment options (single and limited premium payment) and customizable maturity options based on your child’s milestones. It is one of the most ideal plans for parents who want to build a secured corpus for their children.
🔍 What is LIC Amritbaal Plan 874?
- 🔒 Guaranteed Additions Plan with ₹80 per ₹1000 of Basic Sum Assured per year.
- 👧 Child-focused savings and protection plan for education, marriage, and life goals.
- 🔁 Flexible premium options: Choose between single premium and limited premium payment (5, 6, or 7 years).
- 🎯 Custom maturity age selection: Choose any age from 18 to 25 years for the policy’s maturity.
- 📜 Policy comes with risk cover on the child’s life and attractive tax benefits.
🌟 Key Features of LIC Amritbaal Plan 874
| Feature | Description |
|---|---|
| Guaranteed Additions | ₹80 per ₹1,000 Basic Sum Assured per policy year |
| Premium Payment Options | Single Premium / Limited Premium (5, 6, or 7 years) |
| Flexible Maturity Age | Choose maturity age from 18 to 25 years |
| Risk Cover on Child’s Life | Available throughout the policy term |
| Policy Type | Non-linked, Non-participating, Individual, Savings Plan |
| Rider Option | Premium Waiver Benefit Rider (PWB) available |
| Loan Facility | Available after 3 years (limited premium) or after 3 months (single premium) |
| Tax Benefits | Premium under 80C and maturity under 10(10D) |
🧒 Who Can Buy LIC Amritbaal Plan?
| Eligibility Criteria | Details |
|---|---|
| Minimum Entry Age | 30 days (child’s age) |
| Maximum Entry Age | 13 years |
| Minimum Maturity Age | 18 years |
| Maximum Maturity Age | 25 years |
| Sum Assured | ₹2,00,000 and above (no upper limit) |
| Premium Modes | Yearly, Half-Yearly, Quarterly, Monthly, Single Pay |
💡 Premium Payment Terms
| Plan Type | Available Terms |
|---|---|
| Limited Premium | 5, 6, or 7 years |
| Single Premium | One-time payment only |
| Policy Term | Min. 10 years (Limited Pay), Max. 25 years |
🎁 Guaranteed Additions – LIC’s Assured Growth Plan
Under this plan, the policyholder is entitled to guaranteed additions of ₹80 per ₹1,000 sum assured every year throughout the policy term, payable at the time of maturity or death.
Even in the year of death (if it occurs during the policy term), full year’s guaranteed additions will be payable.
In case of policy surrender, the addition for that policy year will be proportionately calculated based on the completed number of months.
⚰️ Death Benefit
LIC Amritbaal Plan offers two-tiered death benefits depending on whether the risk coverage has started or not:
🔸 Before Commencement of Risk (Children under 8)
- Death Benefit = All premiums paid (excluding GST, rider premium, extra premiums)
🔸 After Commencement of Risk (Age 8+ or 2 years after start)
- Death Benefit = Sum Assured on Death + Accrued Guaranteed Additions
Sum Assured on Death – Explained
Depending on the premium option selected, the death benefit will be:
🔹 For Limited Premium Payment
| Option | Benefit |
|---|---|
| Option 1 | Higher of 7 times Annualized Premium or Basic Sum Assured |
| Option 2 | Higher of 10 times Annualized Premium or Basic Sum Assured |
🔹 For Single Premium Payment
| Option | Benefit |
|---|---|
| Option 3 | Higher of 1.25 times of Single Premium or Basic Sum Assured |
| Option 4 | Higher of 10 times of Single Premium or Basic Sum Assured |
🎉 Maturity Benefit
On survival till maturity, the Sum Assured + Guaranteed Additions will be paid to the policyholder.
📌 Maturity Amount = Basic Sum Assured + ₹80 x Policy Term x (Sum Assured ÷ 1000)
This payout can be used for:
- 🎓 Higher Education
- 💍 Marriage Expenses
- 🏠 First Career Launch or Settlement Support
📅 Date of Commencement of Risk
- For children under age 8, risk will start either 2 years from policy start date or at age 8, whichever is earlier.
🔑 Date of Vesting
The policy automatically vests in the name of the child when he or she attains 18 years of age. After vesting, the child becomes the owner of the policy.
💰 Loan Facility
- Available after 3 years for limited premium policies.
- Available after 3 months for single premium policies.
- Special benefit: 1% lower interest rate on loans under girl child policies.
🔄 Surrender & Revival Options
| Feature | Details |
|---|---|
| Surrender | Allowed after 2 years of full premium payments (limited) or anytime after 3 months (single) |
| Revival | Within 5 years from date of the first unpaid premium |
| Backdating | Allowed within the same financial year (not before launch date) |
📜 Additional Plan Highlights
| Feature | Description |
|---|---|
| Rider Availability | Premium Waiver Benefit Rider (PWB) available |
| Lock-in Period | 2 years |
| Tax Benefits | Premium under Sec 80C, Maturity under Sec 10(10D) |
| Proposal Forms | Form No. 300 and 360 |
| Cooling-off Period | 15 days from policy receipt |
| Installment Settlement | Maturity can be received in 5, 10, or 15 years in installments |
✅ Why Choose LIC Amritbaal Plan 874?
LIC Amritbaal Plan 874 is ideal for responsible parents who want to plan for their children’s future goals while ensuring guaranteed returns and insurance protection.
✨ Key Benefits:
- ✔️ Guaranteed Additions for long-term growth
- ✔️ Flexible premium payment & maturity age options
- ✔️ Suitable for education, marriage, or life planning
- ✔️ Full risk cover and tax-free maturity
- ✔️ Loan facility with concessional rates for girl child
- ✔️ Optional rider for enhanced protection
📈 Example: LIC Amritbaal Plan (Illustration)
Let’s consider a 6-year-old child. The parent chooses:
- Basic Sum Assured: ₹5,00,000
- Premium Payment Term: 5 years (Limited Premium)
- Policy Term: 18 years (Maturity at age 24)
- Guaranteed Additions: ₹80 × 500 = ₹40,000 per year
Total Guaranteed Additions = ₹40,000 × 18 = ₹7,20,000
👉 Total Maturity Amount = ₹5,00,000 + ₹7,20,000 = ₹12,20,000 (Tax-Free)
📣 Conclusion
If you’re looking to build a solid financial foundation for your child’s future, LIC Amritbaal Plan 874 is a smart, secured, and flexible investment choice. With guaranteed returns, life cover, and a host of child-focused benefits, this plan delivers the dual advantage of safety and growth.
