LIC Amritbaal Plan 774: Is Your Child's Cover Worth It?
LIC's Amritbaal Plan 774 is a child savings-cum-insurance plan with guaranteed additions. Before you buy, understand the real returns, tax rules, and whether a term plan plus SIP beats it for your family.
₹80 annual guaranteed addition sounds solid — but that's roughly 8% on face value, less than a basic FD at many banks right now.
Your child's LIC plan guarantees this much extra every year — but does the maths actually work for you?
Key Takeaways
Calculate the IRR: ask your LIC agent for a premium illustration and run the numbers — compare against a 5-year FD or debt mutual fund with the same monthly outflow.
Check the 10(10D) eligibility rule: ensure your annual premium does not exceed 10% of the sum assured, otherwise maturity proceeds become fully taxable.
Separate insurance from investment — price a pure term plan for yourself first; if it costs under ₹800/month for ₹50L cover, invest the rest in a PPF or diversified fund instead.
LIC's Amritbaal Plan 774 is a child savings-cum-insurance plan with guaranteed additions. Before you buy, understand the real returns, tax rules, and whether a term plan plus SIP beats it for your family.
Here's what happened: LIC's Amritbaal Plan 774 is a non-linked, participating child endowment plan offering ₹80 per ₹1,000 sum assured as guaranteed additions each policy year.. Premiums qualify for Section 80C deduction and maturity proceeds are tax-free under Section 10(10D), subject to the premium-to-sum-assured ratio rule.. GST applies at 4.5% on the first-year premium and 2.25% on renewal premiums — a cost that reduces the effective yield most buyers calculate..
What you should do: Calculate the IRR: ask your LIC agent for a premium illustration and run the numbers — compare against a 5-year FD or debt mutual fund with the same monthly outflow.. Check the 10(10D) eligibility rule: ensure your annual premium does not exceed 10% of the sum assured, otherwise maturity proceeds become fully taxable.. Separate insurance from investment — price a pure term plan for yourself first; if it costs under ₹800/month for ₹50L cover, invest the rest in a PPF or diversified fund instead..
Guaranteed additions in traditional LIC plans accrue only if the policy is in force at maturity — a lapse or early surrender forfeits a large portion, so never commit a premium you can't sustain for the full term.
If this affects your borrowing choices, compare current personal loan options from 100+ lenders on GoCredit.
Explore TARA — Your Financial Co-Pilot
Retirement, tax, EMI, refinance and savings calculators — all free. Get a plan aligned to YOUR income, goals and CIBIL.
Try TARA — Free →References
- [1]“Finance | LIC Amritbaal Plan 774: Benefits, Guaranteed Additions, GST and Tax Rules in 2026” taxguruin · 8 Oct 2026
This article is reported by GoCredit's Editorial Team based on the source above. GoCredit synthesises, contextualises, and adds India-borrower-relevant analysis. We are not the original publisher.
Every story here posts to X the moment it breaks. Follow @gocredit_news →