LIC Amritbaal Plan 774: LIC (Life Insurance Corporation of India) has introduced a brand-new insurance plan called Amritbaal Plan 774, specially designed to meet the higher education and future financial needs of children. Re-launched on 1st October 2024, this revised plan reflects the latest changes mandated by IRDAI (Insurance Regulatory and Development Authority of India). In this blog, we’ll explore the key features and benefits of the Amritbaal Plan 774, and how it can be a solid choice for securing your child’s future.
What is the LIC Amritbaal Plan 774?
The LIC Amritbaal Plan 774 is a guaranteed insurance plan designed for children, aimed at providing financial support for their education and long-term needs. With the tagline, “बड़े सपनों का रख के ख्याल,” LIC highlights that this plan is tailored to help parents fulfil their children’s dreams through guaranteed financial security.
Key Features:
- Guaranteed Maturity Amount: The plan provides a fixed, guaranteed maturity amount when the policy matures.
- Tagline: “बड़े सपनों का रख के ख्याल,” emphasizing the focus on fulfilling children’s dreams.
Eligibility Criteria for LIC Amritbaal Plan 774
One of the standout features of this plan is its flexibility in terms of entry age:
- Entry Age: The minimum entry age is 30 days (the child must be at least 30 days old) and the maximum is 13 years.
- Maturity Age: The plan matures when the child reaches 18 to 25 years of age, making it suitable for planning their higher education or early adulthood needs.
Premium Payment Options
You can choose between two premium payment modes:
- Regular Premium: For those who wish to pay in regular intervals over time.
- Single Premium: One-time premium payment for the entire policy.
Policy Terms:
- Regular Premium Term (PPT): Minimum term of 10 years.
- Single Premium Term: Minimum term of 5 years.
For instance, if the child is 13 years old, opting for the single premium would allow the policy to mature when the child turns 18, which can be useful for funding their education.
Sum Assured & Risk Coverage
- Minimum Sum Assured: The policy offers a minimum sum assured of ₹2 lakh.
- Maximum Sum Assured: No upper limit; however, amounts above ₹25 lakh are selected in multiples of ₹50,000.
The sum assured can be chosen based on your earnings and requirements for your child’s future.
Risk Coverage Options:
- Regular premium policies offer either 7 times or 10 times of the annual premium as risk coverage.
- For single premium policies, risk cover can range from 1.25 times to 10 times of the premium amount.
Risk Cover for Children
- For children below 8 years, the risk cover starts after 2 years of the policy term.
- For children aged 8 years and above, the risk cover starts immediately upon purchase.
Guaranteed Returns & Loyalty Additions
This plan offers guaranteed returns based on your investment. For every ₹1000 invested, you will receive a guaranteed return of ₹80. Additionally, loyalty additions will be provided at maturity, ensuring that your child receives a substantial sum for their future needs.
Premium Waiver Rider
An important feature is the Premium Waiver Rider, available for children aged 0 to 17 years. This rider allows the parent to opt for a waiver of premiums in case of unforeseen circumstances like the death of the policyholder. This ensures the policy continues without the burden of premium payments, securing the child’s future.
Eligibility for Premium Waiver Rider:
- Parent’s age must be between 18 and 55 years.
- The rider benefit continues until the parent turns 70 years.
Loan Facility
The plan also allows for a loan against the policy, up to 90% of the total premium paid after the policy is in force. This can be a lifesaver in emergencies or when additional funds are required.
Surrender Value
The Guaranteed Surrender Value (GSV) makes this plan more customer-friendly. If you need to surrender the policy after 1 year, you will receive the surrender value along with a guaranteed bonus. This feature is particularly helpful in cases of mis-selling or if you decide to close the policy early.
Other Important Features
- Free-Look Period: The free-look period has been extended to 30 days from the previous 15 days.
- Settlement Option: You can opt for the settlement option at maturity, allowing you to receive the maturity benefits in installments.
- Rebate on High Sum Assured: Attractive rebates are available for high sum assured policies.
Maturity and Death Benefits
- At maturity, the policyholder will receive the sum assured along with the guaranteed addition of 8%.
- In case of the unfortunate death of the policyholder or child before maturity, the policy provides a death benefit to the nominee, ensuring financial security for the family.
Conclusion
The LIC Amritbaal Plan 774 is a powerful tool for parents looking to secure their child’s future. With guaranteed returns, risk cover, flexible payment options, and robust maturity benefits, this plan offers comprehensive financial protection for your child’s higher education and other future needs. If you’re looking for a plan that combines flexibility with security, the LIC Amritbaal Plan 774 could be the right choice.
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