Secure Your Child’s Future with LIC Amrit Baal Plan
LIC Amrit Baal plan is a gift for every parent who envisions a bright future for their child. Life Insurance Corporation of India (LIC of India) has launched the Amrit Baal plan in the category of endowment plan that offers guaranteed additions to build a sufficient corpus for a secured future for the child. When it comes to customer satisfaction and service excellence, LIC of India has been considered the prevailing life insurance company in India ever since its inception. Let’s look into LIC Amrit Baal plan details to help you understand the benefits and important features to help you plan a strong financial future for your young one.
Table of Content
What is LIC Amrit Baal Plan?
LIC Amrit Baal is a non-participating, non-linked, individual savings and life insurance plan specially designed to build a corpus for your little champs. The parent becomes the proposer and buys the LIC Amrit Baal policy in the name of their child. The wealth accumulated through premium collected and guaranteed additions can be utilized to meet the higher education and other essential needs of the children.
Being a non-participating plan, the death benefits or survival benefits payable are guaranteed and fixed and are not affected by the market experience of the company. LIC Amrit Baal plan can be purchased online from the LIC official website (www.licindia.in) and offline through licensed agents, brokers, corporate agents, insurance market firms, POSP-LI/ CPSC-SPV.
Highlights of LIC Amrit Baal Policy
Let’s look at the key highlights of the LIC Amrit Baal Plan that make it a suitable purchase option for your child's financially secure future.
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Plan Type
Endowment Plan
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Guaranteed Additions
8% rate
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Maturity Age
18 to 25 years
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Premium Payment
Single and limited
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Rider
Premium Waiver Benefit Rider
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Sum Assured
Rs. 2 Lakhs - No Limit
Eligibility Criteria of LIC Amrit Baal Plan
Your child must meet the following eligibility criteria to be able to get insured under the LIC Amrit Baal plan:
| Particulars | Specifications |
|---|---|
| Entry Age | 30 days - 13 years |
| Minimum Policy Term | For limited premium payment: 10 years For single premium payment: 5 years |
| Maximum Policy Term | For limited premium payment: 25 years For single premium payment: 25 years Policy purchased through POSP-LI/ CPSC-SPV: 20 years |
| Premium Payment Term | For limited premium payment: 5, 6, & 7 years For single premium payment: Single pay |
Date of Commencement of Risk:
If the life assured is less than 8 years at the time of purchase of the LIC Amrit Baal Plan, the risk will commence under the following terms (whichever is earlier):
- 2 years from the date of policy commencement, or
- Policy anniversary coinciding with or immediately after the completion of 8 years of age of life assure
If the life assured is 8 years or above, the risk commences immediately at the time of policy issuance.
Date of Vesting Under the Plan:
LIC Amrit Baal plan automatically vests in the name of the life assured on the policy anniversary on or immediately after the completion of 18 years of age. In such a case, the life assured becomes the policy owner.
LIC Amrit Baal Plan Benefits
To ensure that the future of your child remains financially protected against any uncertainties of life, the following benefits are offered under the LIC Amrit Baal Plan:
Death Benefit
As per the future needs of the child, the proposer can select the ‘Sum Assured on Death’ based on the premium payment option. Once the option is selected, it cannot be altered in the future; hence, it is suggested that a thoughtful decision be made.
| Premium Payment | Option | Sum Assured on Death |
|---|---|---|
| Limited Premium Payment | Option 1 | Higher of
|
| Option 2 | Higher of
|
|
| Single Premium Payment | Option 3 | Higher of
|
| Option 4 | 10 times of single premium |
Maturity Benefit
Suppose the life assured survives the maturity date of the policy when the policy is in force. In that case, the life assured receives the ‘Sum Assured on Maturity’ with the accrued guaranteed additions. The sum assured on maturity is the basic sum assured under the LIC Amrit Baal Policy.
Guaranteed Additions
When the policy is in force, the guaranteed additions are added at the rate of 8% of the basic sum assured at the end of each policy year, starting from the inception of the policy till the end of the policy term.
In case of death of the life assured during the policy term, the guaranteed additions are paid for the full policy year in the year of death. For policy surrender, the guaranteed additions are added proportionately for the completed months of the policy year in which the policy is surrendered.
Optional Benefits Under LIC Amrit Baal Plan
The following options are available to extend the underlying benefits of the base LIC Amrit Baal policy.
Add-On Rider
The optional rider can only be added to Option 1 and Option 2 by paying an additional premium. The rider cannot be availed if the LIC Amrit Baal policy is purchased through POSP-LIC/ CPSC-SPV.
LIC Premium Waiver Benefit RiderThe proposer can only add LIC Premium Waiver Benefit Rider when the life assured is minor at the time of opting for the rider and the policy is in force. The rider can be selected at any policy anniversary when the premium paying term of the base policy and rider remains for at least five years.
If the LIC Premium Waiver Benefit Rider is opted for, and on the death of the proposer, the due premium payments of the base policy on or after the death of the policy shall be waived until the expiry of the rider term.
Settlement Option for Maturity Benefit
The policyholder can opt for the settlement option that allows the life assured to receive the maturity benefit in instalments over a period of 5, 10 or 15 years. The policyholder or the life assured (if aged 18 or above) can opt for this option to receive full or part of the maturity proceeds. The minimum instalment amount for different payment modes are as follows:
| Mode of Instalment Payment | Minimum Instalment Amount |
|---|---|
| Monthly | Rs. 5,000 |
| Quarterly | Rs. 15,000 |
| Half-yearly | Rs. 25,000 |
| Annually | Rs. 50,000 |
Option to Take Death Benefit in Instalment
The policyholder can opt for the settlement option that allows the life assured to receive the maturity benefit in instalments over a period of 5, 10 or 15 years. The policyholder or the life assured (if aged 18 or above) can opt for this option to receive full or part of the maturity proceeds. The minimum instalment amount for different payment modes are as follows:
| Mode of Instalment Payment | Minimum Instalment Amount |
|---|---|
| Monthly | Rs. 5,000 |
| Quarterly | Rs. 15,000 |
| Half-yearly | Rs. 25,000 |
| Annually | Rs. 50,000 |
LIC Amrit Baal Plan Premium Chart
Let’s understand the premium rates for LIC Amrit Baal plan with the help of an imaginary example.
Say, Mr Baghbani purchases LIC Amrit Baal policy for his 5-year-old son, Gaurav, from offline mode. The basic sum assured selected is Rs. 5 Lakhs, and the policy is valid for 20 years. The premium rates for different premium payment modes are as follows:
- Limited Premium Payment
Premium Paying Term Annual Premium Option 1 Option 2 5 years Rs. 99,625 Rs. 1,00,100 6 years Rs. 84,275 Rs. 84,625 7 years Rs. 73,625 Rs. 73,900 - Single Premium Payment
Premium Paying Term Annual Premium Option 3 Option 4 Single Pay Rs. 3,89,225 Rs. 4,12,600
* The above premium rates are taken from the sources available on the LIC official website.
Additional Features of LIC Amrit Baal Plan
LIC Amrit Baal Plan works as a financial asset for your child when planning for a bright future. Except for the benefits mentioned above, some features of the LIC Amrit Baal plan make it more flexible and a suitable option as a child plan to invest in:
Premium Payment Modes
The premium for LIC Amrit Baal plan can be paid in two modes: single premium payment or limited premium payment. For a limited premium payment mode, the premiums can be made monthly, quarterly, half-yearly, or yearly.
Grace Period
The policyholder is allowed a grace period to make due premium payments under option 1 and option 2 only. A grace period of 15 days is offered for the monthly payment mode, while a 30-day grace period is offered for quarterly, half-yearly or yearly premium payment modes.
Policy Revival
If the premiums are not paid within the allowed grace period, the policy lapses and the benefits cease. However, the revival of the lapsed LIC policy is possible (when option 1 or option 2 is opted for) within 5 consecutive years from the date of the first unpaid premium. To revive the LIC Amrit Baal policy, the policyholder needs to pay all outstanding premiums with interest. Upon revival, all the benefits are restored.
Rebates/ Discounts
LIC Amrit Baal plan offers suitable rebates under the following scenario:
For High Sum Assured: The rebate rates depend upon the basic sum assured slab, entry age, and maturity age of the child. For a high sum assured, higher rebates are offered.
For Online Sale: If LIC Amrit Baal plan is purchased online without any assistance from an agent or intermediary, then it is eligible for a rebate at the following rates:
| Premium Payment Option | Online Sale Rebate (% of tabular annual/ single premium) |
|---|---|
| Limited Premium Payment | 10% |
| Single Premium Payment | 2% |
Paid Up Value
If the policyholder pays premiums for at least two full years and any subsequent premiums are not paid, the policy shall not be whole void but acquire the paid-up value till the end of the policy term. Under such conditions, the sum assured on death is reduced to ‘Death Paid-Up Sum Assured’, and the sum assured on maturity is reduced to ‘Maturity Paid-Up Sum Assured’.
Policy Surrender
If the policyholder opts for limited premium payment, they can surrender the policy anytime during the policy term if at least two full years of premium are paid. Under a single premium payment, the policy can be surrendered at any time during the policy term. The applicable surrender value is higher than the guaranteed surrender value and special surrender value, which is payable in the following manner:
| Premium Payment Option | Guaranteed Surrender Value |
|---|---|
| Under limited premium payment | (total premium paid X GSV factor) + (accrued guaranteed additions X GSV factor) |
| Under single premium payment | First three policy years: 75% of the single premium paid After the third policy year: 90% of the single premium paid |
Policy Loan
The policyholder can avail of a loan under LIC Amrit Baal policy under the following circumstances:
| Premium Payment Option | Availability of Loan | Amount Available for Loan |
|---|---|---|
| Limited Premium Payment |
|
|
| Single Premium Payment |
|
Up to 75% of the surrender value |
Loss of Policy
In case any false information is found to be contained in the proposal, personal statement, or any declaration, the policy shall be void. Any claims raised under such a scenario shall be subject to the provision of Section 45.
Termination of Policy
LIC Amrit Baal policy shall immediately terminate under the following events:
- On payment of the lump sum death benefit or final instalment of the death benefit
- On the settlement of surrender value
- On the date of maturity
- Upon the payment of the final instalment under the settlement option
- Upon the expiry of the revival period
- On the payment of the free look cancellation amount
Tax Benefit
The policyholder can avail of tax benefits on the premium paid under Section 80C of the Income Tax Act, 1961. Also, the payouts received are tax-exempt under Section 10 (10D).
Free Look Period
Under the LIC Amrit Bal plan, a 30-day free-look period is available. During this period, the policyholder can review the policy and return it to the corporation if they are not satisfied with the terms and conditions. Upon receiving the receipt for the same, LIC India cancels the policy and returns the premium amount deposited.
Waiting Period
When the LIC Amrit Baal plan is purchased through POSP-LI or CPSC-SPV and on the death of the life assured (other than accidental) within 90 days from the date of commencement of risk, LIC of India refunds the total premium paid. In case of accidental death during the waiting period, the beneficiaries receive the death benefit.
Exclusions Under LIC Amrit Baal Policy
Suicide committed by the life assured is considered as an exclusion under LIC Amrit Baal policy and restricts the beneficiary from receiving any predetermined benefits, except for:
| Premium Payment Mode | Suicide Committed | Total Amount Payable |
|---|---|---|
| Under limited premium payment | Within 12 months from the date of commencement of risk | 80% of the total premium paid |
| Within 12 months from the date of revival | Amount higher of
|
|
| Under single premium payment | Within 12 months from the date of commencement of risk | 80% of the single premium paid |
Final Words
By purchasing LIC Amrit Baal, you can build a sufficient corpus for secured future of your child. The maturity benefits received can be utilized to ensure quality education and financial independence. Also, the plan offers guaranteed additions with the maturity and death benefits received.
Once you purchase the policy, you can add it to your LIC customer portal and track it online. With LIC e-services, you can also make LIC premium payments, check LIC claim status, and track policy status without visiting the LIC branch or contacting an agent. For more details on the LIC Amrit Baal policy, you can find an LIC agent or life insurance agent nearby using RenewBuy Advisor Connect.
Disclaimer
The content published in this article is intended solely for the reader's informational purposes and should not be relied upon for personal, medical, legal, or financial decisions. It is advisable to seek advice from a qualified professional regarding specific concerns. The details provided regarding the plan are for reference purposes only. Please visit the insurer's website for the latest updates on the plan. The Company does not guarantee the suitability, reliability, timeliness, or accuracy of the information, services, or any other aspects mentioned in this regard for any purpose. We do not endorse any particular insurance company or insurance product provided by any insurer.