LIC has launched AmritBaal (874) on 21 February 2024. LIC Amritbaal plan is specifically designed to have an adequate corpus to meet the higher education and other needs of your child. It facilitates the accumulation of corpus through Guaranteed Addition.
Table of Contents
LIC AmritBaal (874) – Eligibility & features
The Key features of AmritBaal Plan are
- Guaranteed Addition -Rs. 80 per thousand Basic Sum Assured throughout the Policy Term.
- Option to choose Life Insurance coverage for your child as per the needs.
- 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 benefit in instalments.
- Option to choose Premium Waiver Benefit rider on payment of additional premium.
- Benefit of attractive High Sum Assured Rebate.
- Takes care of liquidity needs through loan facility.
Other features such as premium payment frequency, choose your sum assured, settlement options of claim, partial withdrawal and accident benefit rider, enhance the features of the plan.
| Minimum Sum Assured | Rs 2,00,000/- |
| Maximum Sum Assured | No Limit |
| Minimum Policy Term | Limited Premium Payment: 10 years Single Premium Payment: 5 years |
| Maximum Policy Term | Limited Premium Payment: 25 years Single Premium Payment: 25 years In case of policies procured through POSP-LI/CPSC-SPV: 20 years |
| Premium Paying Term | Limited Premium Payment: 5, 6 & 7 years Single Premium Payment: Single Pay |
| Minimum Age at entry | 0 years (30 days completed) |
| Maximum Age at entry | 13 years (last birthday) |
| Minimum Maturity Age | 18 years (completed) |
| Maximum Maturity Age | 25 years (last birthday) |
| Mode of installment premium | Please choose the frequency of your payments: Monthly, Quarterly, Half-Yearly, or Yearly. |
Benefits under LIC AmritBaal ( table no 874)
Maturity Benefit
On maturity, the basic Sum assured along with accrued Guaranteed Additions is payable.
What is Guaranteed Additions for In-force policy?
The Guaranteed Additions is accrued 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.
Suppose the Basic sum assured is Rs. 1 lac then Guaranteed Additions will be calculated as follows;
100000/1000*80 = Rs.8000
This Guaranteed Additions will be added every year till maturity.
Death benefit
| Premium Payment | Option | Sum Assured on Death |
| Limited Premium Payment | Option I | Higher of • 7 times of Annualized Premium; or • Basic Sum Assured Death benefit will not be less than 105% of “Total Premiums Paid” upto the date of death |
| Limited Premium Payment | Option II | Higher of • 10 times of Annualized Premium; or • Basic Sum Assured Death benefit will not be less than 105% of “Total Premiums Paid” upto the date of death |
| Single Premium Payment | Option III | Higher of • 1.25 times of Single Premium; or • Basic Sum Assured |
| Single Premium Payment | Option IV | 10 times of Single Premium |
The options should be chosen carefully depending on your child’s specific needs, as the premium & benefits under the plan shall vary as per the option chosen and the same shall not be altered later.
It is important to note here:
In case, the age at entry of the Life Assured is less than 8 years, the risk will commence either 2 years from the date of commencement of the policy or from the policy anniversary coinciding with or immediately following the attainment of 8 years of age, whichever is earlier.
For those aged 8 years or more at entry, risk will commence immediately i.e. from the Date of issuance of policy.
Explanation:
For instance, Suppose Bestii Singh aged 5 years, is life assured buy LIC AmritBaal on 30/3/2024.
the Since age is less than 8 years. The risk coverage will start after 30/3/2026 or at the age of 8 years. Here, the period of 2 years is completed in 2026 i.e. at the age of 7.
So, risk coverage will start from age 7 years only.
RIDER – In case LIC’s Premium Waiver Benefit Rider is opted for, in the event of the death of the Proposer ( may be a guardian), any subsequent Premiums which are waived shall be deemed to have been received and be included in the Total Premiums Paid.
Settlement Option ( For Maturity Benefits/Death Claims)
One can choose to receive Maturity benefits in instalments over the chosen period of 5/10/15 years instead of a lump sum amount.
The instalments shall be paid in advance at yearly,half-yearly, quarterly or monthly intervals, as opted for, subject to minimum instalment amount for in force or paid policies.
| Mode of Instalment payment | Minimum Instalment amount |
| Monthly | Rs. 5,000/- |
| Quarterly | Rs. 15,000/- |
| Half-Yearly | Rs. 25,000/- |
| Yearly | Rs. 50,000/- |
LIC AmritBaal policy- Premium Illustration
The sample illustrative premiums for Basic Sum Assured of Rs 5 Lakh, for Standard lives aged 5 years and for policy term 20 years under Limited and Single Premium payment options for policies to be sold through Offline sales are as under:
| Premium Paying Term (in Years) Limited Premium | Annual Premium (in Rs. Option 1) | Annual Premium (in Rs. Option 2) |
| 5 | 99,625 | 1,00,100 |
| 6 | 84,275 | 84,625 |
| 7 | 73,625 | 73,900 |
| Premium Paying Term (in Years) | Single Premium (in Rs.)-Option III | Option IV |
| Single Pay | 3,89,225 | 4,12,600 |
Before investing, it is better to explore other Pure investment and pure risk coverage Options too.
You can always work with a Certified Financial planner and plan your finances, including Emergency funding, building a corpus for house purchase, and taking care of your health needs so that you can plan a better retirement income in your second inning, leading to a more secure and financially stable retirement.
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