Parents don’t wake up thinking about insurance products; they wake up thinking about their child’s future. LIC’s child‑focused plans are best used early as a safety net under those dreams – not as a last‑minute fix.
Why Parents Must Start Planning Early for Their Child’s Future
Children’s big goals; higher education, marriage, maybe a startup, arrive on fixed dates, but the actual costs keep rising. A small child today may need ₹20–40 lakh or more for higher education in 15–20 years, depending on course and city. If planning starts only when the child is a teenager, parents often land up relying on short‑term FDs, loans, or dipping into retirement savings.
Starting early helps you:
- Let compounding work longer so smaller monthly premiums can grow into a meaningful corpus.
- Create a separate “do‑not‑touch” fund that is not easily used for daily expenses.
- Ensure the goal continues even if the earning parent is not around, via life cover and rider structures like premium‑waiver.
LIC’s child plans combine protection with goal‑based savings and time‑aligned payouts to address these needs.
LIC Jeevan Tarun: Education & Graduation Milestone Planning
LIC Jeevan Tarun is a participating, non‑linked child plan aimed at education and other needs between ages 20 and 25.
- Who it’s for: Children aged 30 days to 12 years at entry; maturity at age 25.
- Premium pattern: Regular premiums typically payable up to 20 years minus the child’s entry age.
- How benefits work:
Parents can choose one of four options: 25%, 50%, 75% or 100% of the Basic Sum Assured distributed across ages 20–24 as annual survival benefits, with the balance (if any) payable at 25 along with bonuses. - Guarantee vs. bonus: Only the Basic Sum Assured is guaranteed. Survival and maturity benefits include reversionary and possible final bonuses, which are not guaranteed and depend on LIC’s future surplus declarations.
- Protection and riders: The plan provides life cover on the child; on child’s death, the higher of Basic SA or 10× annualised premium plus bonuses (subject to conditions) is payable. Rider options such as premium‑waiver on proposer’s death are available as per LIC’s current rider grid and underwriting, and must be confirmed from the latest brochure.
- Example (illustrative, non‑numerical):
A parent starting Jeevan Tarun for a 2‑year‑old with a ₹10 lakh Basic SA could receive survival payouts from ages 20–24 to support coaching or college fees, and a final maturity at 25 for higher studies or seed money. The exact bonus build‑up would depend on LIC’s performance and declared bonuses over the years.
Plan features, rider availability, and bonus rates are subject to LIC’s current rules and may change; always confirm latest plan code/UIN and details with LIC or a licensed advisor.
LIC New Children’s Money Back Plan (932): Payouts at 18, 20 and 22
LIC New Children’s Money Back Plan (Plan 932) is a participating money‑back plan that targets typical expense spikes at ages 18, 20 and 22.
- Who it’s for: Child entry age 0–12 years; policy term = 25 minus entry age, with regular premiums for the full term.
- Premium pattern: Regular premium throughout the term, supporting steady accumulation.
- Benefit pattern:
- Guarantee vs. bonus: The 20‑20‑20‑40 pattern on Basic SA is guaranteed. Bonuses at maturity (and on death) are participating and not guaranteed, depending on LIC’s future surplus.
- Protection and riders: The policy provides life cover on the child; riders like premium‑waiver on proposer’s death may be available as per current LIC rider rules. Rider availability and conditions must be checked in the latest LIC brochure.
- Example (illustrative, non‑numerical):
A parent starting Money Back 932 for a 1‑year‑old with a ₹10 lakh SA could receive 20% payouts at ages 18, 20 and 22 to cover coaching or college fees, and a final maturity at 25 for higher studies. The bonus portion of these benefits would depend on LIC’s performance and declared bonuses during the term.
Plan features, rider options, and bonus rates are subject to change; always confirm the latest plan code/UIN and terms with LIC or a licensed advisor.
LIC Amritbaal (874): Predictable Corpus with Guaranteed Additions
LIC Amritbaal (Plan 874) is a newer child savings plan that leans on guaranteed additions to make the maturity amount more predictable.
- Who it’s for: Child entry age 30 days to 13 years; maturity age can be chosen between 18 and 25.
- Premium pattern:
- Core benefit design:
- Guarantee vs. bonus: Unlike purely bonus‑driven plans, Amritbaal clearly specifies guaranteed additions each year, making the guaranteed component of maturity much more predictable. Any participating bonuses declared are discretionary and over and above these additions.
- Example (illustrative, non‑numerical):
A parent starting Amritbaal for a 3‑year‑old with a ₹10 lakh SA and a 6‑year premium term could finish paying by the time the child is 9, knowing that a predictable guaranteed corpus will mature around age 21. Any additional bonus amount on top of the guaranteed additions would depend on LIC’s future performance and bonus declarations.
Plan features, guaranteed‑addition rates, bonuses, and rider options are subject to LIC’s current rules and may change. Always verify the latest brochure, plan code/UIN and rider grid with LIC or a licensed advisor.
Snapshot: Comparing Key LIC Child Plans
Only Basic Sum Assured and guaranteed additions (in Amritbaal) are assured; all bonuses are discretionary.
Blending Insurance and Investments for Your Child’s Future
LIC child plans can form the secure base of your child’s education or marriage corpus, but they work best when combined with other tools:
- Use a term plan on the earning parent’s life for large, low‑cost protection beyond the child‑plan sums.
- Use one or more LIC child plans to lock in a minimum guaranteed/participating corpus for non‑negotiable goals.
- Use SIPs in equity mutual funds or other growth assets as an “upgrade layer” to enhance the standard of education or wedding, without depending solely on market returns.
A practical sequence:
- Fix the minimum amount you cannot afford to miss (for example, ₹15–20 lakh in today’s terms for higher education).
- Choose the LIC child plan whose payout pattern best matches the goal year; Jeevan Tarun for ages 20–25 with recurring payouts, Money Back 932 for 18/20/22 milestone needs, or Amritbaal for a single, predictable maturity sum.
- Add riders and separate term cover to protect the plan if something happens to the earning parent.
- Layer mutual fund investments for aspirational upgrades like overseas study or a larger wedding budget.
The earlier you start; ideally when your child is still a toddler, the lighter the monthly premium burden and the higher your confidence that their dreams are financially protected.
Have questions about LIC’s child plans like Jeevan Tarun, Money Back 932, or Amritbaal? Talk through your doubts and get personalized guidance on premiums, riders, and tax benefits directly at +91‑7832933580 before you invest.
Disclaimer
LIC child plans are subject to LIC’s current rules and IRDAI regulations. Only the Basic Sum Assured and guaranteed additions (where applicable) are assured; bonuses are discretionary and may vary over time. Tax benefits under Sections 80C and 10(10D) depend on prevailing laws and conditions such as premium‑to‑sum‑assured ratio (currently up to 10%). For policies issued after April 2023, aggregate annual premiums across non‑ULIP policies exceeding ₹5 lakh may affect tax‑free status of maturity proceeds. Plan features, rider availability, bonus rates and guaranteed‑addition rates are subject to change; always verify plan codes/UINs and tax treatment with LIC, a licensed advisor, and a tax professional before purchase.
