LIC of India
LIC Amritbaal Policy

LIC Amritbaal

Parents care deeply about their child’s future, wanting the best for them. They invest emotionally and financially to provide opportunities, ensuring their children become successful and well-rounded individuals. This commitment encourages them to purchase children’s insurance plans that can offer financial support and protection during their dire needs.

One such recently launched plan is LIC’s Amritbaal, which is a savings, individual, non-participating, and non-linked life insurance plan. The primary purpose of this plan is to create a fund that adequately covers your child’s higher education and other needs. This is accomplished by accumulating a corpus through guaranteed addition. 

To know more about the plan, continue reading!

Eligibility Details Of LIC Amritbaal Plan

Minimum Entry Age0 Years (30 Days Completed)
Maximum Entry Age13 Years (Last Birthday)
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 Obtained Through POSP-LI/CPSC-SPV: 20 Years
Maximum Maturity Age25 Years (Last Birthday)
Minimum Maturity Age18 Years (Last Birthday)
Minimum Sum AssuredRs. 2,00,000/-
Maximum Sum AssuredNo Limit (Subject To Certain Decisions)

Exploring Essential Features & Benefits Of LIC Amritbaal Plan

This section will unravel the vital features and benefits of the Amritbaal plan from LIC.

Maturity Benefit:

If the insured individual is alive at the specified maturity date and the policy is active, they will receive the “Sum Assured on Maturity” as a maturity benefit. This benefit will be offered along with “Guaranteed Additions” that have been accumulated for years and the benefit amount will be equal to the “Basic Sum Assured”.

Death Benefit:

The policyholders can select from two “Sum Assured on Death” options for ‘Single Premium’ and ‘Limited Premium Payment’. It is important to choose your options carefully based on your child’s needs because the chosen option will determine the premiums and benefits and it cannot be changed later.

The death benefits as per the options chosen are as follows:

Premium PaymentOptionsDeath Benefit/Sum Assured On Death
Limited Premium PaymentOption 1

Higher Of

  • 7 X Annualized Premium
  • Basic Sum Assured
Option 2

Higher Of

  • 10 X Annualized Premium
  • Basic Sum Assured
Single Premium PaymentOption 3

Higher Of

  • 1.25 X Single Premium
  • Basic Sum Assured
Option 410 X Single Premium

Guaranteed Additions:

If you have an active insurance policy, you earn ‘Guaranteed Additions’ of Rs. 80 for every thousand of your coverage each year. In case you pass away unfortunately during the policy term, the Guaranteed Additions for that year will be paid for the entire year.

Rider Benefits:

If your insurance policy is active, you can add the ‘Premium Waiver Benefit Rider’ on any policy anniversary during the premium-paying term of the base policy. Just make sure that the remaining premium paying term for both the base policy and the rider is at least five years.


The plan offers higher flexibility in the following manner:

  • It offers to choose the coverage for your child as per their needs.
  • It offers to choose the premium payment options from ‘Single Premium’ and ‘Limited Premium Payment’.
  • It offers to choose the maturity age from 18 to 25 years.
  • It offers options to take death and maturity benefits in installments.

Suicide Exclusion:

If the insured person dies by suicide within 12 months from the date of commencement of risk, the plan may deny the claim and refund 80% of the total premiums paid. This provision does not apply if the Life Assured is under the age of 8 at the time of entry.

Grace Period:

A 30-day grace period is granted for yearly, half-yearly, or quarterly premiums from the ‘First Unpaid Premium’ date. For monthly premiums, there’s a 15-day grace period. During this time, the policy stays active with uninterrupted risk coverage. However, failure to pay before the grace period ends results in policy termination. The same grace period applies to rider premiums due to the base policy premium.


The plan offers attractive rebates to its policyholders after attaining certain conditions. These rebates are as follows:

  • Rebates For Higher Sum Assured: The plan offers rebates for the following higher sum assured slabs:
    • Rs. 3,50,000 To 4,75,000
    • Rs. 5,00,000 To 9,75,000
    • Rs. 10,00,000 To 24,50,000
    • Rs. 25,00,000 and above
  • Rebates Under Online Sale: Rebate rates are applicable for completing proposals independently through online sales.
    • Limited Premium: 10%
    • Single Premium: 2%

Free Look Period:

If the policyholder is unhappy with the policy’s terms and conditions, they have 30 days from receiving the electronic or physical policy document (whichever is earlier) to return it to the corporation. However, the policyholder is required to state the reason for returning the policy.

Settlement Options For Maturity & Death Benefits:

Under an active or paid-up policy, the settlement option provides the policyholder with the flexibility to receive the maturity and death benefit in periodic installments over 5, 10, or 15 years, rather than as a lump sum. This option can be exercised during the minority of the life assured or by the life assured themselves, once they reach the age of 18 or above.

Sample Benefit Illustration Of LIC Amritbaal Plan

Let’s take the example of Mr. Kumar, who has a son of 5 years. He has chosen the Option 1 of the plan. Other details are as follows:

  • Age: 5 Years
  • Basic Sum Assured: Rs. 5,00,000/-
  • Maturity Age: 25 Years
  • Policy Term: 20 Years
  • Premium Payment Term: 7 Years
  • Mode Of Premium Payment: Yearly
  • Instalment Premium: Rs. 73,625/-

The plan will function in the following manner!

Policy Year (End Of Policy Year)Cumulative Premium (Annualized)Guaranteed AdditionsMaturity BenefitDeath Benefit
1Rs. 73,625Rs. 40,0000Rs. 73,625
5Rs. 3,68,125Rs. 2,00,0000Rs. 7,15,375
10Rs. 5,15,375Rs. 4,00,0000Rs. 9,15,375
15Rs. 5,15,375Rs. 6,00,0000Rs. 11,15,375
20Rs. 5,15,375Rs. 8,00,000Rs. 13,00,000Rs. 13,15,375

How To Invest In LIC Amritbaal Plan?

The plan can be purchased either through an offline or online method. 


You can visit a nearby branch office of LIC, approach the executive’s desk, and give all the required information for acquiring the policy. Alternatively, you also have the option to purchase the policy through reliable third-party agents or intermediaries. However, it is important to ensure that these agents or intermediaries have a good reputation and can be trusted.

Frequently Asked Questions

The plan has two premium payment options: single premium or limited premium payment. In case of limited premium payment options, the policyholders can pay premiums through yearly, half-yearly, quarterly, or monthly modes (monthly premiums through NACH only) or salary deductions.

Yes. You can take a loan against your LIC’s Amritbaal plan. The maximum amounts of loans are as follows:

  • For In-Force Policies: Upto 90% of Surrender Value
  • For Paid-Up Policies: Upto 80% of Surrender Value

Statutory taxes on the plan will follow applicable tax laws and rates set by the Government of India or relevant tax authorities. Policyholders are responsible for paying these taxes separately, in addition to their premium payments. 

The amount of tax paid does not affect the calculation of plan benefits. However, it is important to consult a tax advisor for information on income tax benefits and implications related to premiums and plan benefits.

Risk coverage starts 2 years from the policy start date or the policy anniversary after the ‘Life Assured’ turns 8 (whichever is earlier) for those under 8 years at entry. For those aged 8 or older at entry, risk coverage begins immediately upon policy issuance.

If any false or incorrect statement is discovered in the proposal, personal statement, declaration, or related documents, or if any material information is intentionally withheld, the policy will be considered void. In these situations, any claims for benefits under the policy will be governed by the rules in Section 45 of the Insurance Act of 1938, which may be updated from time to time.

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