Making plans for your child’s future has never been easier. You can quickly estimate the premium you’ll pay and the maturity benefit you’ll receive under this LIC savings-cum-insurance plan by using the Amritbaal (Plan 774) Premium and Maturity Calculator. With complete transparency on benefits, death cover, surrender values, and other aspects, this tool helps you see what your investment will grow into, whether your goal is to save for education, marriage, or any other long-term objective.
LIC’s Amritbaal (Plan 774) Calculator
Estimate premiums and benefits for LIC’s Amritbaal Plan.
What Is LIC’s Amritbaal (Plan 774)?
LIC’s Amritbaal is a non-linked, non-participating life insurance plan that is specifically made for children’s futures, including their education, marriage, and further education. This means that benefits are guaranteed according to the terms of the policy and profits or bonuses are not shared. Important characteristics include:
- Guaranteed Additions: At a rate of ₹ 80 per thousand of Basic Sum Assured, fixed additions are accrued annually.
- Death Benefit: The nominee gets the “Sum Assured on Death” plus accumulated guaranteed additions if the policyholder (child) passes away before maturity.
- Maturity Benefit: “Sum Assured on Maturity” plus accrued guaranteed additions are paid upon reaching maturity.
- Options for Premium Payment:
- Restricted Premium Payment
- One Premium Payment
- The amount of death insurance depends on the method of payment:
- Option I (Limited): the greater of the Basic Sum Assured or the 7× annual premium
- Option II: Basic Sum Assured or 10× annual premium
- Option IV: 10× single premium; or 1.25× single premium, or Basic Sum Assured.
Why This Plan Appeals
- A strong focus on guaranteed returns, making it appropriate for parents who are risk averse.
- In the event of a parent’s untimely death, death benefits guarantee the child’s future.
- Several premium options give you flexibility based on your cash flow: limited premium payments if you prefer installments, or a single lump sum if you have money now.
- Benefits of surrendering: Depending on the policy payment option, you may surrender after predetermined times and receive either special surrender value or guaranteed surrender value.
Real World Data Example & Analysis
Here are some sample scenarios to illustrate how premiums / maturity benefit may work:
| Scenario | Basic Sum Assured | Premium Payment Mode / Term | Annual Premium (approx) | Guaranteed Additions over Term | Maturity Benefit (Approx) |
|---|---|---|---|---|---|
| Child aged 0 | ₹ 1,00,000 | Limited Premium Payment, say 10 years premium, policy term 20 years | ₹ 8,500 per year (just illustrative) | ₹ 80 × 100 × 20 = ₹ 1,60,000 over duration (₹ 80 per ₹ 1,000 × 100 = 8,000/year × 20 years) | Sum Assured + ₹ 1,60,000 additions + premiums’ protection (≈ ₹ 1,00,000 + ₹ 1,60,000 = ₹ 2,60,000) |
| Single Premium option | ₹ 2,50,000 | Single Premium paid up front, policy term 15 years | One-time payment ~₹ 2,30,000 (depending on age) | Guaranteed additions each year: ₹ 80 × (250,000/1000) = ₹ 20,000/year × 15 years = ₹ 3,00,000 | Maturity = Basic Sum Assured (₹ 2,50,000) + additions (₹ 3,00,000) = ₹ 5,50,000 |
These figures are illustrative only. Actual premium depends on age, premium payment term, policy term, etc.
Analysis:
- Guaranteed additions contribute significantly to returns over the long run.
- Although a single premium option requires more initial capital, it offers upfront liquidity with no subsequent payments.
- Limited premium payment options strike a balance between time and payment load.
Expert Opinion & Context
“Savings-cum-insurance plans with guaranteed components are particularly relevant for middle-income Indian households who prefer low volatility and assured returns.” — Ruchi Mehra, Actuarial Consultant, Mumbai
“LIC’s Amritbaal addresses two critical needs of Indian parents: ensuring financial protection through life cover, and disciplined savings for major life events such as education or marriage.” — Prof. Arvind Sharma, Finance Department, Delhi University
FAQs
Although LIC typically accepts children ages 0 to 1, the product document does not specifically specify the minimum age requirement in this section. Your LIC branch will need to verify your exact age eligibility at the time of purchase.
Grace period applies:
30 days for yearly / half‐yearly / quarterly premium modes.
15 days for monthly mode. If you still fail to pay, policy may lapse; after one full year’s premium being paid, it may become paid-up (i.e. reduced benefits) rather than void.
Indeed. Submit after a minimum of one full year under Limited Premium Payment, with a guaranteed surrender value available after two full years of premiums. You can surrender under Single Premium Payment at any point during the duration of the policy. The surrender value will be the higher of the Special Surrender Value and the Guaranteed Surrender Value.
It is a sum that LIC adds every year, guaranteed, from the start of the policy until the end of the term. This is ₹ 80 for every 1,000 of Basic Sum Assured under Amritbaal. These additions build up and are included in the maturity or death benefit.
If the Life Assured (child) dies during policy term and policy is in force, the benefit payable is “Sum Assured on Death” plus accrued guaranteed additions. The Sum Assured on Death depends on which option of premium payment you chose (limited, single etc.).
You have a 30-day free look period from receipt of policy document during which you can review, and if dissatisfied, return policy for full refund.
Why Use the Premium and Maturity Calculator?
- See how much premium you’ll need for various sum assured, terms, and modes right away.
- aids in comparing options, such as long-term versus short-term and limited versus single premium.
- SPEAKS in numbers: all guaranteed components are shown clearly, so there are no surprises.
- aids in financial planning for important life objectives.