LIC Amritbaal Calculator

LIC Amritbaal Plan 774 — Everything You Need to Know Before You Buy

Most parents open a children's bank account, maybe start a recurring deposit, and tell themselves they will figure out the rest later. Later arrives fast. School fees compound. Coaching costs explode. College entrance has a price tag attached before the application is even submitted. By the time the money is needed, the gap between what was saved and what is required is painful.

LIC Amritbaal (Plan 774) solves this the way LIC does most things: with a guarantee written into the contract on Day 1. You commit to a sum assured today. You pay for 5, 6, or 7 years. And then you wait — knowing that Rs 80 per Rs 1,000 BSA is being added to your child's policy every single year, silently, without any action from you. When your child reaches the age you chose — 18, 20, 22, 25 — the full BSA plus every rupee of those Guaranteed Additions is paid out in one lump sum. No board meeting, no bonus committee, no market movement decides that number. You know it on the day you sign.

Why Guaranteed Additions Are Different from Bonuses

Most LIC plans offer bonuses — additional amounts declared each year based on LIC's surplus. Those bonuses are real, and LIC has a strong track record of declaring them. But they are not contractually guaranteed. A non-participating plan like Amritbaal takes a different path: it offers no bonuses but instead promises a fixed, contractual addition every year. Rs 80 per Rs 1,000 BSA. If your BSA is Rs 10 lakh, that is Rs 8,000 per year without exception, without negotiation, without risk.

Over 20 years on Rs 10 lakh BSA, that adds up to Rs 1,60,000 in total Guaranteed Additions on top of the Rs 10 lakh BSA. Total guaranteed payout at maturity: Rs 11,60,000. What you see in this calculator is not a projection. It is a contractual promise backed by the Government of India's sovereign guarantee on LIC.

Limited Pay — Why Paying for 7 Years Makes More Sense Than It Sounds

The instinctive assumption is that a longer payment term means more money committed. With Amritbaal's Limited Pay, that assumption runs in reverse. The 7-year PPT option has the lowest annual premium of the three. You pay a smaller amount per year but for one extra year compared to the 6-year option. More importantly, choosing 7 years means each annual outgo is smaller and more manageable alongside school fees, rent, and EMIs.

The brochure sample shows this directly: for a 5-year-old child with BSA Rs 5 lakh and 20-year term under Option I, the annual premium is Rs 99,625 for the 5-year PPT and Rs 73,625 for the 7-year PPT. The 7-year PPT saves Rs 26,000 per year over the 5-year PPT, though you pay for two extra years. Run the numbers in this calculator using your own BSA and compare the total premium paid across all three PPTs — the difference is often smaller than expected.

Single Pay vs Limited Pay — Which One Is Right for You

Single Pay is straightforward: one payment at inception, covered for the full policy term. No more decisions, no more renewals, no risk of lapsing because of a bad year financially. The brochure sample shows a Single Pay premium of Rs 3,89,225 for Option III (BSA Rs 5 lakh, age 5, 20-year term) — considerably less than the Rs 5,15,375 total paid under the 7-year Limited Pay option. The single premium approach suits parents who receive a lump sum — inheritance, gratuity, or a matured FD — and want to deploy it immediately into a structured, guaranteed child savings instrument.

Limited Pay suits salaried parents who prefer to spread the cost over years rather than commit a large lump sum at once. The Premium Waiver Benefit Rider available under Limited Pay provides an additional layer of security: if you die or become permanently disabled during the premium-paying term, all future premiums are waived and your child's policy continues in full force to maturity.

The Risk Commencement Rule for Very Young Children

If you enrol your child before age 8, there is one detail that matters: life risk does not commence immediately. The policy starts, GAs accrue from Year 1, premiums are collected — but the death benefit during the risk-deferred period is limited to a refund of premiums paid without any additions. Risk commences at whichever is earlier: 2 years from the policy date or the policy anniversary on which the child turns 8. After risk commencement, the full death benefit applies. This rule applies only to children enrolled before age 8 and is a standard LIC provision for all children's plans — it is not specific to Amritbaal.

What Happens at Maturity — and the Settlement Option

At the maturity date, your child (by then an adult between 18 and 25) receives BSA plus all accumulated Guaranteed Additions as a lump sum. If the amount is large and you prefer not to receive it all at once, LIC offers a Settlement Option: the maturity benefit can be taken in instalments over 5, 10, or 15 years, paid annually, half-yearly, quarterly, or monthly. The minimum instalment under this option is Rs 5,000 per month. This is useful for parents whose child will be in college at maturity and may benefit more from a periodic allowance than a single large payout.

How to Read the Premium This Calculator Shows

The premium in this calculator is the offline tabular premium from the LIC brochure. If you purchase online through licindia.in, you receive a 10% rebate on the tabular annual premium under Limited Pay (2% under Single Pay). The online rebate checkbox in the inputs above applies this automatically. High Sum Assured rebates are also applied for larger BSA amounts. All figures in this calculator are pre-GST final amounts — since September 22, 2025, all individual life insurance premiums are GST-exempt.