Last Updated: 12 Oct 2025 | By Keyur Tirgar, LIC Agent Code: 04699-102
Every parent dreams of providing the best education and a secure future for their children. Rising education costs, however, make this dream increasingly challenging. LIC Amritbaal is a newly launched plan specially designed to secure your child's higher education and other needs. Launched on February 17, 2023, this child-centric insurance policy has quickly become one of the most popular choices among Indian parents.
In this comprehensive guide, I'll walk you through everything you need to know about LIC Amritbaal Plan 874, including its features, benefits, eligibility criteria, and whether it's the right choice for your family.
What is LIC Amritbaal Plan 874?
LIC Amritbaal (Plan 874) is a non-linked, non-participating, individual life insurance savings plan specifically designed for children. The primary objective is to help parents build a financial corpus for their child's future needs, particularly higher education and marriage expenses.
Key Highlights at a Glance:
- Plan Type: Child Savings Plan with Life Cover
- Launch Date: February 17, 2023
- UIN (Unique Identification Number): 512N369V04
- Child's Entry Age: 30 days to 13 years
- Maturity Age: 18 to 25 years (flexible)
- Premium Payment: Single Premium or Limited Premium (5, 6, or 7 years)
- Policy Term: Varies based on maturity age selected
- Guaranteed Additions: ₹80 per ₹1000 Basic Sum Assured (BSA) each year
Key Features of LIC Amritbaal Plan 874
1. Guaranteed Additions
One of the most attractive features of LIC Amritbaal is its guaranteed additions. The plan offers Guaranteed Additions of ₹80 per ₹1000 Basic Sum Assured (BSA) each year. These additions accrue annually and are paid along with the maturity benefit, significantly enhancing your total returns.
Example:
- Basic Sum Assured: ₹10,00,000
- Annual Guaranteed Addition: ₹80 × 1000 = ₹80,000
- For a 15-year policy: Total Guaranteed Additions = ₹80,000 × 15 = ₹12,00,000
2. Flexible Maturity Age
The plan provides flexible maturity age between 18 and 25 years. You can align the policy maturity with your child's specific milestone:
- Age 18: For undergraduate education
- Age 21: For postgraduate studies
- Age 25: For higher education abroad or marriage
3. Multiple Premium Payment Options
The plan offers the choice of premium payment options from 'Single Premium' and 'Limited Premium Payment'.
Limited Premium Payment Options:
- 5 years
- 6 years
- 7 years
Single Premium: Pay once and secure your child's future for the entire policy term.
4. Premium Waiver Benefit (Optional Rider)
The Premium Waiver Rider ensures the policy continues even if the parent dies. If the parent (proposer) passes away during the premium payment term, all future premiums are waived, and the policy continues until maturity. Your child still receives the full maturity benefit.
This is a crucial feature that ensures your child's financial plan remains on track regardless of unfortunate circumstances.
5. Death Benefit Options
The plan offers options to take death and maturity benefits in installments.
If Child Dies During Policy Term:
- Lump Sum: Death Benefit + Guaranteed Additions (vested till date) + Loyalty Addition (if applicable)
- Installment Option: Benefits can be paid in 5 or 10 annual installments
6. Loan Facility
You can take a loan on the Amritbaal policy after 2 years of premium payments. This provides liquidity in case of emergencies while keeping the policy active.
7. Surrender Value
If you need to surrender the policy prematurely, surrender value is available after paying premiums for at least 2 years (for regular premium) or immediately (for single premium).
Eligibility Criteria for LIC Amritbaal
Child (Life Insured):
- Minimum Entry Age: 30 days
- Maximum Entry Age: 13 years
- Maturity Age: 18 to 25 years (as chosen)
Proposer (Parent/Guardian):
- Minimum Age: 18 years
- Maximum Age: No specific upper limit
- Relationship: Parent, grandparent, or legal guardian
Sum Assured:
- Minimum: ₹1,00,000
- Maximum: No limit (subject to underwriting)
Premium Payment Term:
- Limited Premium: 5, 6, or 7 years
- Single Premium: Pay once
Benefits of LIC Amritbaal Plan 874
1. Guaranteed Returns
Unlike market-linked plans, LIC Amritbaal offers guaranteed returns. The plan ensures fixed benefits are paid out in case of death or survival, regardless of actual experience. There's complete certainty about what your child will receive at maturity.
2. Tax Benefits
Premiums are eligible under Section 80C for deduction up to ₹1.5 lakh annually. Maturity and death benefits are generally tax-free under Section 10(10D) (subject to conditions).
3. Financial Discipline
The plan enforces financial discipline. By committing to regular premium payments for a fixed period, you ensure consistent savings for your child's future.
4. LIC's Trust and Reliability
LIC trust provides a double advantage - the security of a government-backed institution with India's highest claim settlement ratio (98%+).
5. Dual Protection
The plan offers both savings and life insurance protection. While building a corpus for education, it also provides life cover for the child.
6. Premium Waiver Safety Net
With the optional Premium Waiver Rider, even if something happens to the parent, the child's policy continues without any further premium payment.
7. Flexibility in Benefit Payout
Choose between lump sum or installment payout of death benefits based on your preference and child's needs.
How Does LIC Amritbaal Work? (With Example)
Let's understand with a practical example:
Policy Details:
- Child's Current Age: 5 years
- Maturity Age Chosen: 21 years
- Policy Term: 16 years
- Premium Payment Term: 7 years
- Basic Sum Assured: ₹10,00,000
- Annual Premium: Approximately ₹75,000 (illustrative)
Benefits Breakdown:
During Policy Term:
- Annual Guaranteed Addition: ₹80,000 (₹80 × 1,000)
- Total Guaranteed Additions (16 years): ₹12,80,000
- Premium Waiver Rider: Active for 7 years
At Maturity (Age 21):
- Basic Sum Assured: ₹10,00,000
- Guaranteed Additions: ₹12,80,000
- Loyalty Addition (if applicable): ₹50,000 (estimated)
- Total Maturity Benefit: ₹23,30,000
Investment:
- Total Premium Paid: ₹75,000 × 7 = ₹5,25,000
Returns:
- Absolute Return: ₹23,30,000 - ₹5,25,000 = ₹17,75,000
- Approximate IRR: 7-8% per annum
Tax Savings:
- Annual deduction under 80C: ₹75,000 × 7 years = ₹5,25,000
- Tax saved (assuming 30% bracket): ₹1,57,500
Premium Structure and Rebates
Premium Payment Modes:
- Single Premium: One-time payment
- Annual
- Half-Yearly
- Quarterly
- Monthly (through ECS/auto-debit only)
Rebates Available:
The plan offers rebates for the following higher sum assured slabs:
1. Sum Assured Rebates:
- ₹3,50,000 to ₹4,75,000: Specific rebate %
- ₹5,00,000 to ₹9,75,000: Higher rebate %
- ₹10,00,000 and above: Maximum rebate %
2. Premium Payment Mode Rebates:
- Annual mode: Highest savings (recommended)
- Half-yearly: Moderate savings
- Quarterly/Monthly: No rebate (pay full premium)
Tip: Choose annual payment mode with higher sum assured to maximize rebates and reduce overall premium cost.
Who Should Buy LIC Amritbaal?
Ideal Candidates:
✓ Risk-Averse Parents: Those who prefer guaranteed returns over market-linked returns
✓ Young Families: Parents with children aged 0-13 years
✓ Disciplined Savers: Those who want forced savings mechanism
✓ LIC Loyalists: Families who trust LIC's proven track record
✓ Tax Savers: Individuals looking for Section 80C investments
✓ Single-Income Families: Where Premium Waiver Rider is crucial
May Not Be Suitable For:
✗ Parents seeking higher returns (10-12%+)
✗ Those comfortable with market-linked investments (ULIP, mutual funds)
✗ Individuals with existing adequate child education corpus
✗ Those needing high liquidity in short term
Comparison: LIC Amritbaal vs Other Child Plans
| Feature | LIC Amritbaal | Traditional ULIP | PPF for Child |
|---|---|---|---|
| Returns | Guaranteed 7-8% | Market-linked (can be higher or lower) | Fixed ~7.1% (current) |
| Life Cover | Yes | Yes | No |
| Premium Waiver | Available (rider) | Available (rider) | Not applicable |
| Lock-in Period | Till maturity | 5 years | 15 years |
| Risk | Zero market risk | Market risk | Zero risk |
| Flexibility | Limited | High | Moderate |
| Tax Benefits | 80C + 10(10D) | 80C + 10(10D) | 80C + tax-free interest |
| Best For | Guaranteed protection + savings | Growth-oriented parents | Pure savings |
How to Buy LIC Amritbaal Plan 874?
Option 1: Through LIC Agent (Recommended)
Contact Me:
- Name: Keyur Tirgar
- LIC Agent Code: 04699-102
- Phone/WhatsApp: +91 9784309640
- Email: tirgarkuriya@gmail.com
- Service Area: All Over Rajasthan
Benefits of buying through agent:
- Free personalized consultation
- Help with accurate form filling
- Premium calculation and comparison
- Guidance on riders and options
- Ongoing policy servicing support
- Claims assistance when needed
Option 2: Online through LIC Website
- Visit www.licindia.in
- Navigate to "Buy Online" → "Child Plans"
- Select "LIC Amritbaal Plan 874"
- Enter details and calculate premium
- Complete online application
- Pay premium online
- Receive policy document via email
Option 3: Visit LIC Branch
Visit your nearest LIC branch office with:
- Child's birth certificate
- Parent's ID and address proof
- Income proof (if sum assured is high)
- Recent photographs
- Medical reports (if required)
Documents Required
For Child (Life Insured):
- Birth certificate (mandatory)
- Aadhaar card (if available)
- School ID (for older children)
- Recent passport-size photographs
For Proposer (Parent):
- Identity Proof (Aadhaar, PAN, Passport, Voter ID)
- Address Proof (Aadhaar, Utility Bills, Rent Agreement)
- Income Proof (for higher sum assured)
- Bank account details and cancelled cheque
- Recent passport-size photographs
Medical Requirements:
- Generally no medical tests for children
- Medical examination may be required for very high sum assured
- Declaration of child's health history
Important Things to Know
1. Suicide Clause
If the insured person dies by suicide within 12 months from the date of commencement of risk or revival, only 80% of premiums paid will be refunded (excluding taxes and extra premium).
2. Grace Period
- For annual, half-yearly, quarterly premiums: 30 days
- For monthly premiums: 15 days
- Policy remains in force during grace period
3. Revival
Lapsed policies can be revived within 5 years from the date of first unpaid premium, subject to payment of arrears and interest.
4. Free Look Period
If you're not satisfied with the policy terms, you can return it within 15 days (30 days if purchased online) for a full refund (minus medical examination charges and stamp duty).
5. NRI Eligibility
Yes, NRIs are eligible to purchase this plan with certain documentation requirements.
Pros and Cons of LIC Amritbaal
Advantages (Pros):
✅ Guaranteed Returns: No market risk, complete certainty of benefits
✅ LIC's Credibility: Government-backed, highest claim settlement ratio
✅ Premium Waiver Option: Policy continues even if parent dies
✅ Tax Benefits: Deductions under 80C, tax-free maturity
✅ Flexible Maturity Age: Align with child's specific needs
✅ Short Premium Payment: Pay for 5-7 years, coverage till maturity
✅ Loan Facility: Liquidity option in emergencies
✅ Life Cover: Dual benefit of savings and protection
Disadvantages (Cons):
❌ Modest Returns: Returns are modest (not for aggressive growth seekers)
❌ Inflation Impact: 7-8% returns may not fully beat education inflation (10-12%)
❌ Limited Flexibility: Cannot withdraw before maturity without loss
❌ Opportunity Cost: Could potentially earn more in equity mutual funds
❌ No Bonus/Surplus: Does not include any extra benefits like bonuses or shares of surplus profits
❌ Long Commitment: Need to pay premiums for committed years
Frequently Asked Questions (FAQs)
Q1. What is the minimum and maximum sum assured in LIC Amritbaal?
A: Minimum sum assured is ₹1,00,000. There is no maximum limit, subject to underwriting norms.
Q2. Can I increase the sum assured later?
A: No, the sum assured cannot be increased once the policy is issued. You can, however, buy an additional policy.
Q3. What happens if I miss a premium payment?
A: You get a grace period of 30 days (15 days for monthly). If not paid within grace period, policy lapses. You can revive within 5 years.
Q4. Is medical examination required for the child?
A: Generally not required. May be needed for very high sum assured or if child has pre-existing health conditions.
Q5. Can grandparents buy this plan for their grandchildren?
A: Yes, grandparents can be proposers if they can prove insurable interest and meet age requirements.
Q6. How are guaranteed additions calculated?
A: Guaranteed additions accrue at ₹80 per ₹1,000 of Basic Sum Assured annually throughout the policy term.
Q7. When should I buy this plan for maximum benefit?
A: The earlier you start, the better. Ideally within 1-5 years of child's birth for longer wealth accumulation period and lower premiums.
Q8. Can I surrender the policy before maturity?
A: Yes, but not recommended. You'll receive surrender value after 2 years, which will be significantly lower than maturity benefit.
Q9. What is the Premium Waiver Rider cost?
A: Rider cost is nominal (typically 1-2% of base premium) and highly recommended for single-income families.
Q10. How do I claim maturity benefit?
A: Contact your LIC agent or branch 3 months before maturity date. Submit discharge form with policy document and bank details. Amount is credited within 15-30 days.
My Expert Opinion as an Insurance Adviser
As an LIC agent with 5+ years of experience helping families plan for their children's future, here's my honest assessment of LIC Amritbaal:
When I Recommend This Plan:
✓ Primary earning member wants guaranteed, risk-free savings
✓ Family has no other child education corpus in place
✓ Parents are uncomfortable with market volatility
✓ Need premium waiver security for single-income families
✓ Want LIC's government-backed guarantee
✓ Looking for tax-saving instrument under 80C
When I Suggest Alternatives:
✗ If you can handle market risk and want potentially higher returns (consider ULIP + SIP in equity funds)
✗ If you already have adequate term insurance (focus on pure investment products)
✗ If child is already 10+ years old (limited time for compounding)
✗ If education goal is less than 8 years away (too short for this plan)
My Recommendation:
Hybrid Approach for Best Results:
- LIC Amritbaal: 40-50% of education corpus (guaranteed safety net)
- Equity Mutual Funds SIP: 40-50% (for higher growth potential)
- Emergency Fund: 10% (liquid savings)
This balanced approach provides:
- Guaranteed minimum corpus (LIC Amritbaal)
- Potential for higher returns (equity funds)
- Complete flexibility (mutual funds can be withdrawn anytime)
- Risk mitigation through diversification
Conclusion: Is LIC Amritbaal Right for Your Child?
LIC Amritbaal Plan 874 is a solid, trustworthy child insurance plan that offers guaranteed returns and comprehensive protection. The plan builds a strong financial foundation for your child while providing peace of mind through LIC's proven reliability.
Best suited for: Conservative, risk-averse parents who value certainty over potentially higher but uncertain returns.
Key Takeaway: This plan ensures that regardless of market conditions or unfortunate events, your child WILL have a predetermined corpus at maturity. That guarantee alone makes it worth considering, especially as one component of a diversified child education planning strategy.
Next Steps:
Ready to secure your child's educational future with LIC Amritbaal? Let's discuss your specific requirements:
📞 Contact Keyur Tirgar
LIC Agent Code: 04699-102
Phone/WhatsApp: +91 9784309640
Email: tirgarkuriya@gmail.com
Service Area: All Over Rajasthan
I offer:
- Free personalized consultation
- Premium calculation with all rebates
- Comparison with other child plans
- Complete application assistance
- Lifetime policy servicing support
Schedule your free consultation today and let's build a secure future for your child!
Additional Resources
- LIC Official Website
- Download LIC Amritbaal Brochure
- LIC Premium Calculator
- Compare Child Insurance Plans
- Read More: Best Child Education Plans in India
Disclaimer: This blog post provides general information about LIC Amritbaal Plan 874. Premium rates, benefits, and features are subject to change. Always read the official policy document before making any purchase decision. Returns mentioned are illustrative and may vary. Consult with a certified insurance adviser for personalized recommendations.
Published: 12 Oct 2025
Last Updated: 12 Oct 2025
Reading Time: 12 minutes
Category: Insurance Planning
