Amritbaal Plan 874

Amritbaal Plan 874: LIC of India new children plan going to launch in march in February 2024 which name is LIC Amritbaal Plan 874 (Table no 874) is a Gauranteed Additions plan. LIC Amritbaal Plan 874 is a limited premium and single premium payment policy. LIC ‘Amritbaal Plan 874′ is specially designed for various financial needs of children through limited premium and single premium payment option.

As parents in India, our biggest dream is to give our children a life without financial limitations – whether it’s for higher education, overseas studies, marriage, or building a career. However, with education inflation rising at 10–12% annually, even middle-class families find it challenging to prepare for the future.

Table of Contents

This is where LIC Amritbaal Plan 874, a child-specific savings-cum-insurance plan, comes into play.

Key Features of LIC Amritbaal Plan 874

Type of Plan: Non-linked, Non-participating, Individual, Savings, Life Insurance Plan.
Target Group: Specifically designed for children.
Entry Age of Child: 30 days to 13 years.
Policy Term: 10 – 25 years.
Premium Paying Term (PPT): Equal to policy term or (Policy Term – 5 years).
Minimum Basic Sum Assured: ₹2,00,000.
Maximum Basic Sum Assured: No limit (in multiples of ₹5,000).
Maturity Benefit: Guaranteed sum assured + additions.
Death Benefit: On child’s death (after risk cover starts).
Rider Option: Premium Waiver Benefit (PWB) Rider – highly recommended.

Eligibility Criteria

Criteria	Minimum	Maximum
Entry Age of Child	30 days	13 years
Policy Term	10 years	25 years
Sum Assured (Basic)	₹2,00,000	No Limit
Premium Payment Mode	Yearly, Half-yearly, Quarterly, Monthly (NACH)	–
Premium Paying Term	Policy Term or (Policy Term – 5)	–

Benefits of LIC Amritbaal Plan 874

1. Death Benefit (Child Covered)

If the child (life assured) dies after risk commencement, the nominee (usually parent/guardian) receives:

Sum Assured on Death (Basic SA or 7x annualized premium, whichever higher).
Plus guaranteed additions.

If death occurs before risk commencement, premiums paid (excluding taxes) are refunded.

2. Maturity Benefit

At policy maturity (child’s chosen age), the maturity sum assured + guaranteed additions is paid.

3. Premium Waiver Benefit (Rider)

If the parent/proposer dies during the term, future premiums are waived off, but the policy continues for the child. This makes it a must-have rider.

4. Loan Facility

Loan available after 2 years of premium payments.

5. Tax Benefits

Premiums eligible under Section 80C.
Maturity/Death benefits tax-free under Section 10(10D).

Example with Tabular Illustration

Let’s assume:

Child Age: 5 years
Policy Term: 20 years
Sum Assured: ₹10,00,000
PPT: 15 years

Premium Approximation

Mode	Premium (₹)
Yearly	45,000 – 47,000
Half-Yearly	23,000 – 24,000
Quarterly	11,800 – 12,200
Monthly (NACH)	3,900 – 4,000

Maturity Example

Guaranteed Additions: ₹50 per ₹1,000 SA annually (illustrative).
Total GA for 20 years = ₹10,00,000 ÷ 1,000 × 50 × 20 = ₹10,00,000.
Final Maturity = Basic SA (₹10,00,000) + GA (₹10,00,000) = ₹20,00,000.

👉 That means if you invest ~₹45,000 annually for 15 years, your child gets ₹20 Lakhs at maturity.

Analyst Opinions

Strengths

Child-focused savings plan with guaranteed maturity.
High minimum SA (₹2 Lakh) makes it meaningful.
Premium waiver rider ensures security even if parent passes away.
Guaranteed Additions ensure fixed growth.

Weaknesses

Limited returns (around 5–6%).
Not linked with market, so no high-growth potential.
Lock-in for long term (good for disciplined investors).

Expert Verdict:
Best for conservative parents who want guaranteed child funds with no market risk.

Investor Scenarios

Scenario 1 – Education Planning

Mr. Rajesh, 35, invests for his 4-year-old son.

SA: ₹15 Lakh.
Term: 20 years.
PWB Rider opted.
👉 Result: Son gets ~₹30 Lakhs at 24 years (education + marriage fund).

Scenario 2 – Single Mother’s Assurance

Mrs. Neha, 32, invests for daughter, age 2.

Chooses PWB Rider.
👉 Even if she’s not around, daughter receives lump sum maturity without premium burden.

Scenario 3 – NRI Investor

Mr. Arvind, NRI, buys Amritbaal for his nephew.

Ensures tax-free maturity corpus in India.
👉 A safe alternative to volatile investments.

Real Investor Testimonials

Pooja (Bangalore): “I sleep peacefully knowing my son’s education fund is secured with Amritbaal.”
Amit (Delhi): “Guaranteed additions make it reliable, unlike stock-linked child plans.”
Ramesh (Mumbai): “I prefer LIC for trust. Amritbaal is my daughter’s financial backbone.”

Analyst Insights – Why LIC Amritbaal 874 Stands Out

Unlike ULIPs, there’s zero market risk.
Unlike traditional endowment plans, it’s child-specific with waiver benefit.
Guaranteed additions = predictable growth.
LIC brand trust = unbeatable reliability.

FAQs – LIC Amritbaal Plan 874

Q1. What is the entry age for the child?
👉 30 days to 13 years.

Q2. When does the risk cover start for child?
👉 After 2 years of policy commencement or age 8, whichever is earlier.

Q3. Is Premium Waiver Rider compulsory?
👉 Optional, but strongly recommended.

Q4. Can NRIs buy this plan?
👉 Yes, NRIs are eligible.

Q5. Are benefits guaranteed?
👉 Yes, both maturity and death benefits are guaranteed.

Q6. Can I take loan on Amritbaal policy?
👉 Yes, after 2 years of premium payments.

Final Thoughts – Should You Buy LIC Amritbaal Plan 874?

LIC Amritbaal Plan 874 is one of the most reliable child insurance savings plans in India today.

✔ Guaranteed maturity benefits → Secures higher education & marriage.
✔ Premium Waiver Rider → Policy continues even if parent dies.
✔ Tax benefits + LIC trust → Double advantage.
✔ Long-term discipline → Builds strong financial foundation for child.

However:

Returns are modest (not for aggressive investors).
Best suited for conservative parents who prefer guaranteed corpus.

In Conclusion:
LIC Amritbaal 874 is not just a policy – it’s a promise of financial security and love for your child’s tomorrow.