LIC Amritbaal 874: Endowment Insurance Plan for Children (2024)

LIC Amritbaal is a Non-Linked, Non-Participating, Individual, Savings, Life Insurance plan. This is an Endowment plan with Guaranteed Additions designed to meet the higher education and other needs of children. 

This plan offers guaranteed additions and allows for limited premium and single premium payments, giving you the flexibility to choose your premium payment option. 

According to this scheme, the premium can be paid in two ways: Limited Premium for 5, 6, or 7 years or Lump sum (Single Premium). The policyholder can select the “Sum Assured on Death” based on the two options provided for both payment methods.

LIC Amritbaal Insurance plan is aimed at building a substantial fund for your child’s higher education and financial needs, while also providing life cover during the policy term. Guaranteed Addition of Rs. 80 per 1000 Basic Sum Assured is provided throughout the Policy Term to help with corpus accumulation.

LIC Amritbaal Plan 874 – Key Features

• Guaranteed Addition 80 per 1000 Basic Sum Assured throughout the Policy Term
• A plan to fulfill the requirement child Higher education and Marriage
• Limited premium and single premium payment options available
• Option to choose Life Insurance coverage for your child as per the needs
• Premium waiver rider available in this policy for child safety
• Paid premiums are exempted from income tax under sec 80C
• The maturity amount is tax-free under sec 10(10D)
• Flexibility to
  • Choose from Single Premium and Limited Premium Payment.
  • Choose the maturity age from 18 to 25 years for the various needs of your child
  • Opt for payment of benefits in installments.
• Loan benefits 1% less interest charge if loan is taken on her (girl child) policy

LIC Amritbaal Eligibility Conditions

Here are the key highlights of the newly launched policy:

• Minimum Age at Entry is 0 years (30 days completed).
• Maximum Age at Entry is 13 years (last birthday).
• Minimum Age at maturity is 18 years (last birthday)
• Maximum Age at maturity is 25 years (last birthday)
• Short Premium Payment Term of 5, 6 or 7 years available.
• Minimum Policy Term for Limited Premium Payment-10 years
• Minimum Policy Term for Single Premium Payment-5 years
• The maximum Policy Term for Limited /Single Premium Payment is 25 years  
• Minimum Sum Assured is Rs 2 lakh
• Maximum Basic Sum Assured – No Limit

LIC Jeevan Utsav Guaranteed Pension Plan 871 

LIC Amrit Baal Benefits

Maturity Benefit:

If the insured person is alive on the specified Maturity Date and the policy is active, the Sum Assured on Maturity, plus any Guaranteed Additions, will be paid out. The Sum Assured on Maturity is the same as the Basic Sum Assured.

Death Benefit: 

At the proposal stage, the proposer can select “Sum Assured on Death” from the two options offered for both Limited Premium and Single Premium payment. The choice must be made during the proposal stage.

Guaranteed Additions for In-force policy:

During the Policy Term of an active policy, Guaranteed Additions will accumulate at Rs. 80 per thousand Basic Sum Assured every policy year from the beginning until the end of the term. In the event of the Life Assured’s death during the Policy Term of an active policy, Guaranteed Additions for the year of death will be paid for the entire policy year.

Options available for LIC Amritbaal 

i. Option to take Death benefit in installments:

This is an option to receive Death Benefit in instalments over the chosen period of 5 or 10 or 15 years instead of a lump sum amount under an in-force as well as paid-up policy. This option can be exercised by the Policyholder during the minority of the Life Assured or by Life Assured aged 18 years and above during his/her lifetime; for full or part of Death benefits payable under the policy.

The payments must be made before the service is provided, whether on a yearly, half-yearly, quarterly, or monthly basis. The minimum payment amounts vary depending on the chosen payment frequency.

 ii. Settlement Option (For Maturity Benefit):

Settlement Option is an option to receive Maturity Benefit in instalments over a period of 5 or 10 or 15 years instead of lump sum amount under an In-force as well as Paid-up policy.

This option can be exercised by the Policyholder during the minority of the Life Assured or by Life Assured aged 18 years and above, for full or part of Maturity proceeds payable under the policy.

The instalments shall be paid in advance at yearly or half-yearly or quarterly or monthly intervals, as opted for, subject to minimum instalment amount for different modes of payments being as under:

For more information on LIC Amritbaal visit LIC Website.