Calculators LIC plans Amritbaal Review
LIC Amritbaal (Plan 774) is a non-participating child endowment that pays a guaranteed addition of ₹80 per ₹1,000 basic sum assured per year — the highest GA rate among LIC's non-par plans. For a child entering at age 5 with ₹5 lakh sum assured maturing at age 25 (20-year term), the maturity is a guaranteed ₹13 lakh (2.6× the sum assured). The premium waiver rider (for the proposer/parent) is available, ensuring the policy remains in force even if the parent dies before the premium paying term ends.
A parent in their late-20s to early-40s with a young child (ideally under age 5) and a clear target milestone — undergraduate fees at age 18, postgraduate corpus at age 22, marriage gift at age 25. The combination of a 20+ year deferral, a high GA rate, and the premium waiver rider makes Amritbaal the most defensible LIC product for parents who want a contractually guaranteed corpus and refuse to take equity risk on a child's education timeline.
Parents willing to bear equity risk over a 15+ year horizon — a disciplined SIP into a diversified equity fund will, in the historic data, materially outperform Amritbaal's 6.5% guaranteed yield. Parents whose child is already past age 8 — the deferral period shrinks and the GA accrual delivers less leverage. Parents who can't commit to the 5/6/7-year PPT — child plans are particularly damaging to surrender mid-term because the corpus is earmarked.
Forgetting the Premium Waiver Benefit rider is the single most expensive mistake — it costs a small additional premium but converts the plan from a 'savings vehicle that may collapse if the parent dies' into a 'guaranteed corpus regardless of parental survival'. Without PWB, the plan defeats its own purpose. Liquidity needs in the early years force a surrender at painful loss because the GA accrual is back-loaded. Inflation in education costs (historically 8–10% per year in India) outpacing the 6.5% guaranteed yield is a real risk over a 20-year horizon.
Our headline XIRR uses the middle premium-paying term (15 years against a 21-year policy term), excludes optional rider premiums from the cash-flow base, and assumes the latest declared simple reversionary bonus rate holds for the full term. Try other PPTs and bonus assumptions on the Amritbaal calculator.
Last updated · site changelog