LIC's Amritbaal (774)

How the plan works

LIC's Amritbaal is a non-participating child plan: the benefits are fixed when you buy it and do not depend on LIC's profits, so no bonuses are paid. The policy is taken on the child's life. While the policy is in-force, Guaranteed Additions of ₹80 per ₹1,000 Basic Sum Assured are added at the end of every policy year until the end of the term. At maturity, the Basic Sum Assured plus all accrued Guaranteed Additions is paid.

Basic Sum Assured multiples: ₹25,000 from ₹2,00,000 to ₹24,00,000; ₹50,000 above ₹24,00,000.

When cover starts: if the child is under 8 at entry, risk cover starts 2 years after the policy begins or on the policy anniversary on or after the child turns 8, whichever is earlier. For children aged 8 or more, cover starts immediately. The policy automatically passes to the child on the policy anniversary on or after their 18th birthday.

Sample premiums (excluding taxes) for a Basic Sum Assured of ₹5 lakh, child aged 5, policy term 20 years, offline purchase:

Death benefit

The proposer chooses one of four death cover options at the start; it cannot be changed later.

If the child dies after risk has started and before maturity, with the policy in-force, the Sum Assured on Death plus accrued Guaranteed Additions is paid (Guaranteed Additions for the year of death are counted for the full year). Under Options I and II, the death benefit will not be less than 105% of total premiums paid. If a child who joined below age 8 dies before risk cover starts, premiums paid (excluding taxes, extra and rider premiums) are refunded without interest.

Maturity benefit

If the child survives to the maturity date with the policy in-force, LIC pays the Basic Sum Assured plus accrued Guaranteed Additions. The maturity amount can also be taken in instalments (see Settlement option).

Optional riders

• LIC's Premium Waiver Benefit Rider (UIN: 512B204V04) - only under limited premium payment (Options I and II), on the proposer's life; future premiums are waived on the proposer's death until the rider term ends. Not available for policies bought through POSP-LI/CPSC-SPV.

Loan, surrender & revival

• Loan: limited premium policies - after the first policy year once one full year's premium is paid; up to 90% of surrender value (in-force) or 80% (paid-up). Single premium policies - any time after 3 months from policy issue or after the free-look period, whichever is later; up to 75% of surrender value. The brochure states a current loan interest rate of 9.50% p.a. compounding half-yearly, reduced by 1% (to 8.50%) if the child is a girl and the loan is taken for her education.
• Surrender: single premium policies can be surrendered at any time; Guaranteed Surrender Value is 75% of the single premium in the first three policy years and 90% after that, plus the surrender value of accrued Guaranteed Additions. Limited premium policies can be surrendered after the first policy year once one full year's premium is paid, and acquire Guaranteed Surrender Value after two full years' premiums. You receive the higher of Guaranteed and Special Surrender Value.
• Paid-up: for limited premium policies, if at least one full year's premium is paid and premiums stop, the policy continues with proportionately reduced sums assured; Guaranteed Additions then accrue at a reduced rate depending on the premium paying term and years paid.
• Revival: for limited premium policies, a lapsed policy can be revived within 5 consecutive years from the first unpaid premium and before maturity, by paying arrears with interest (9.50% p.a. compounding half-yearly for 1 May 2024 to 30 April 2025), subject to continued insurability.

Other key terms

• Grace period (limited premium): 30 days for yearly, half-yearly and quarterly premiums; 15 days for monthly premiums.
• Free-look period: 30 days from receiving the policy document.
• Settlement option: maturity and death benefits can be taken in instalments over 5, 10 or 15 years. Minimum instalments: ₹5,000 monthly, ₹15,000 quarterly, ₹25,000 half-yearly, ₹50,000 yearly. The maturity option must be chosen at least 3 months before maturity.
• Modal factors (limited premium): half-yearly 0.5090, quarterly 0.2568, monthly 0.0861 of the yearly premium.
• High Sum Assured Rebate: available in four slabs (₹3,50,000 to ₹4,75,000; ₹5,00,000 to ₹9,75,000; ₹10,00,000 to ₹24,50,000; ₹25,00,000 and above). The rebate depends on the slab, entry age and maturity age, and increases with higher slabs.
• Online purchase rebate: 10% of tabular premium for limited premium and 2% for single premium, when bought online without an agent or intermediary.
• POSP-LI / CPSC-SPV purchase: Option IV not available, maximum policy term 20 years, maximum Sum Assured on Death ₹25 lakh, no rider, and a 90-day waiting period for non-accidental death (premiums refunded) for children aged 8 or more at entry.
• Suicide exclusion: applies only where the child is 8 or older; within 12 months of start of risk, 80% of premiums paid is payable.