LIC Jeevan Tarun vs Amritbaal: Which Child Plan Should You Choose?
A plain-language comparison of two LIC child plans, covering payouts, guarantees, premiums, and who each one suits.
Every parent eventually does the same arithmetic. School fees climb, coaching classes become a monthly expense, and a college degree starts to look expensive on a single salary. Child insurance plans promise to get ahead of that curve by combining a savings goal with a financial safety net.
If you're comparing LIC Jeevan Tarun vs Amritbaal, the two plans can look alike at first glance, since both are built for children and both mix savings with life cover. In practice they work quite differently. Jeevan Tarun pays money out in regular instalments during your child's late teens and early twenties. Amritbaal is built around guaranteed additions and a maturity payment that can be taken as a lump sum or spread out. This guide walks through both and helps you work out which one fits your situation.
What to expect from any child plan
A child plan is a long-term contract, usually lasting 10 to 25 years. The life cover it provides is real but modest. For the same premium, a pure term insurance policy would give you a much larger cover amount, which is why term insurance for the earning parent should come first. The savings part is also more modest than what you might earn from equity investments over the same period. What you get in return is predictability and forced discipline. A child plan works best as one piece of a broader plan, not as the whole thing.
Jeevan Tarun: regular payouts with bonus upside
Jeevan Tarun is a participating, non-linked, limited premium plan. "Participating" means policyholders share in LIC's profits through simple reversionary bonuses. "Non-linked" means returns are not tied to the stock market. "Limited premium" means you pay for a fixed number of years, after which the policy continues without further premiums.
The plan's defining feature is its survival benefit. Rather than waiting for maturity, it pays a percentage of the sum assured every year once the child reaches around age 20, for a few consecutive years. That timing lines up well with college fees. The plan offers four options that trade yearly payouts against the maturity amount, as shown in the table below.
| Option | Yearly survival benefit (ages 20 to 24) | Maturity benefit (age 25) |
|---|---|---|
| Option 1 | None | 100% of sum assured |
| Option 2 | 5% of sum assured a year, for 5 years | 75% of sum assured |
| Option 3 | 10% of sum assured a year, for 5 years | 50% of sum assured |
| Option 4 | 15% of sum assured a year, for 5 years | 25% of sum assured |
Based on the plan 834 brochure (2017 edition). Confirm the current percentages with LIC before you decide.
Per the official brochure, a parent or grandparent can buy the plan for a child aged 0 to 12. The death benefit is the higher of 10 times the annualised premium or 125% of the sum assured. Premiums carry a rebate of 2% for yearly payment and 1% for half-yearly payment, and higher sums assured can earn additional rebates. A premium waiver rider is available for an extra premium. You can take a loan once a full year's premium has been paid, and a lapsed policy can be revived within two years of the first missed premium. There is a 15-day free look period after you receive the policy document.
Amritbaal: guaranteed growth and flexible payout
Amritbaal is a non-linked, non-participating savings and life insurance plan. Because it is non-participating, you don't receive LIC's bonus declarations. Instead, the plan builds value through guaranteed additions: at the end of each policy year, LIC adds ₹80 for every ₹1,000 of basic sum assured, as long as the policy stays in force. The trade-off is that you don't share in bonus declarations, but in return the growth is fixed in advance. LIC's own brochure describes the death and survival benefits as guaranteed and fixed, regardless of how LIC's experience turns out.
The plan gives you choices on premiums. You can pay a single premium up front, or pay in limited instalments over 5, 6, or 7 years. The policy term is at least 10 years for limited premium policies and at least 5 years for single premium policies, with a maximum of 25 years. A child can enter the plan anywhere from 30 days old to 13 years old, and the maturity age falls between 18 and 25 depending on the term chosen.
The maturity amount can be paid as a lump sum or in instalments over 5, 10, or 15 years, which many parents find useful for spreading out college costs. The minimum basic sum assured is ₹2 lakh, with no upper limit. For the death benefit, the limited premium options pay either 7 or 10 times the annualised premium, and the single premium options pay either 1.25 or 10 times the single premium. A premium waiver rider is available for an additional premium.
Jeevan Tarun vs Amritbaal: comparison table
| Feature | Jeevan Tarun | Amritbaal |
|---|---|---|
| Plan type | Participating, non-linked, limited premium | Non-participating, non-linked, savings and life |
| Child's entry age | 0 to 12 years (per official brochure) | 30 days to 13 years |
| Premium options | Limited premium payment | Single premium, or limited pay over 5, 6, or 7 years |
| How value grows | Simple reversionary bonuses declared by LIC (not guaranteed) | Guaranteed additions of ₹80 per ₹1,000 basic sum assured each year |
| Payout pattern | Yearly survival benefits from around age 20 | Maturity amount as a lump sum or in instalments over 5, 10, or 15 years |
| Death benefit | Higher of 10 times annualised premium or 125% of sum assured | 7 or 10 times annualised premium (limited pay); 1.25 or 10 times single premium (single pay) |
| Minimum sum assured | Not confirmed in this review | ₹2 lakh |
| Premium rebates | 2% for yearly payment, 1% for half-yearly, plus rebates on higher sums assured | Not confirmed in this review |
| Premium waiver rider | Available | Available |
What the numbers look like
Amritbaal's guaranteed additions are easy to estimate. Take a basic sum assured of ₹2 lakh and a 10-year policy term. The additions come to ₹16,000 a year, or about ₹1.6 lakh over the full term. This is simple arithmetic, not a maturity projection, since it ignores premiums and the exact policy mechanics. Still, it gives a sense of scale.
Jeevan Tarun's survival benefits are calculated as a percentage of the sum assured, and the percentage depends on the option you pick. Its bonuses are not guaranteed, so the final figure will depend on LIC's declarations. For real numbers, ask for a personalised benefit illustration at your intended sum assured and your child's age. Compare the illustrations for both plans using the same sum assured and premium amount.
Who should consider which plan?
Jeevan Tarun may suit you if you want steady yearly cash flow for college, you're comfortable with bonuses that aren't guaranteed, and you'd like access to a loan during the policy term. It also rewards larger sums assured with extra rebates.
Amritbaal may suit you if you prefer guaranteed additions, you have a lump sum you can invest in one go, you want the flexibility to take the maturity amount in instalments, or your child is older at entry, up to 13.
Neither plan is a good fit if your main goal is high long-term growth or if your priority is maximum family protection. For those goals, consider term insurance for protection and separate investments for growth.
Before you buy: a short checklist
- Confirm the plan number and brochure version. LIC has renumbered its plans over time, and guides don't always agree. Jeevan Tarun has appeared as 834, 934, and 734, and Amritbaal appears as both 774 and 874 across different sources. Official brochures are available on LIC's website.
- Get a personalised illustration. Ask LIC or a licensed agent for benefit figures at your exact sum assured, premium term, and your child's age.
- Compare net returns. Look at what you'd earn after tax and inflation, and compare that with alternatives such as the Public Provident Fund, ELSS funds, or index funds, depending on your risk tolerance.
- Check the tax treatment. Tax benefits under Section 10(10D) depend on the ratio of premium to sum assured and the policy's issue date, so confirm the rules with a tax advisor.
- Cover the earning parent first. Make sure there is adequate term insurance before committing to a child plan.
- Avoid early surrender. Surrendering a policy in its early years usually means losing a significant part of what you've paid.
Our take
There is no universal winner. Jeevan Tarun suits parents who want regular payouts during college years and accept that bonuses are not guaranteed. Amritbaal suits parents who want guarantees built into the policy, a one-time investment option, or flexibility in how the maturity amount is received. Use the comparison above as a starting point, then get the official illustrations and choose based on your cash flow and your child's timeline.
Frequently asked questions
Can a newborn be enrolled in either plan?
Yes. Amritbaal accepts children from 30 days old, and Jeevan Tarun's brochure lists an entry range of 0 to 12 years.
Can I buy these plans online?
Amritbaal can be bought offline through licensed agents, brokers, and similar channels, or online directly through LIC's website at licindia.in. Jeevan Tarun's online availability is less clear from current guides, so check with LIC or a licensed agent before assuming.
Are these plans a substitute for term insurance?
No. Both provide cover, but the amounts are modest compared with pure term plans. Treat them as savings products with a protection feature.
This article is for general information only and is not financial, tax, or investment advice. Plan terms are set by LIC and can change. Verify current details with the official brochure or a licensed LIC agent before buying, and consult a qualified advisor for decisions specific to your situation.
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