LIC child planning landscape in 2025
LIC’s official “Plans for Children’s Future” page in 2025 still highlights New Children’s Money Back and Jeevan Tarun as the core traditional child-oriented products, with plan numbers 732 and 734 listed on the Hindi version and updated UINs in brochures. In parallel, market guides and LIC-focused platforms present these same structures as New Children’s Money Back Plan (Plan 932) and Jeevan Tarun (Plan 934), reflecting newer UINs and brochure versions for the same underlying designs.
Alongside these traditional child plans, advisors and aggregators increasingly position LIC SIIP (ULIP) and other growth-oriented products as “child education” solutions when parents want higher market-linked returns rather than only bonus-based money-back. From a parent’s perspective, the label (732/932, 734/934) matters less than understanding the cash-flow logic, eligibility, and whether the version is currently open for sale, which must be confirmed on licindia.in or with an agent before investing.
Why LIC remains popular for child education and marriage
Parents prefer LIC for child planning because they get a defined benefit schedule plus life cover, not just a mutual fund-style corpus. LIC child-type plans are typically non-linked, with-profits (traditional) and aim to meet:
- Education milestones: targeted payouts around 18–22 years when graduation and post-graduation fees peak.
- Marriage/settling down: lump sum at around 25 years for marriage, house down payment, or business capital.
Key reasons LIC child plans remain a default recommendation:
- Age-linked survival benefits at specific child ages (18, 20, 22, 25 etc.) rather than arbitrary policy-years.
- Bonus participation and long-term savings behaviour, without direct equity market risk in traditional plans.
- Tax benefits under Section 80C on premiums and Section 10(10D) on qualifying maturity and death benefits, subject to prevailing rules.
Core LIC child plan design: New Children’s Money Back (732/932)
The New Children’s Money Back structure (listed as 732 on LIC’s Hindi page and described as 932 with updated UIN in brochures) is a Par, non-linked, savings plan designed to fund education and marriage through survival benefits and maturity. It can be purchased by a parent or grandparent for a child from birth (0) to 12 years, making it suitable for newborns.
Eligibility snapshot
- Entry age (child): 0 to 12 years.
- Maturity age: 25 years of the child.
- Policy term: 25−age at entry years.
- Premium paying term: typically equal to 25−age at entry.
- Sum assured: minimum about ₹1,00,000, no fixed upper cap (in multiples of ₹10,000).
- Premium modes: yearly, half‑yearly, quarterly, monthly.
For children under 8, risk on the child usually starts after a short deferment (e.g., 2 years from start or age 8, whichever earlier), whereas for older entry ages it begins immediately; exact wording should always be taken from the current LIC brochure.
Survival benefits and maturity pattern
The hallmark of this design is fixed age-based payouts, typically structured as:
- At age 18: 20% of Basic Sum Assured – often used for Class 12 / first-year college fees.
- At age 20: 20% of Basic Sum Assured – for subsequent semesters or professional courses.
- At age 22: 20% of Basic Sum Assured – for postgraduate or specialised studies.
- At age 25 (maturity): remaining 40% of Basic Sum Assured plus vested Simple Reversionary Bonuses and any Final Additional Bonus.
Because both term and benefit ages are tied to the child’s age, a newborn entry almost perfectly aligns the 18/20/22/25 payouts with real-world education and marriage stages.
Protection features and riders
Along with savings, New Children’s Money Back provides:
- Death benefit on child’s life (after risk commencement) typically equal to sum assured plus bonuses, as per policy terms.
- Option to add Premium Waiver Benefit (PWB) Rider on the proposer’s life so that if the parent dies, future premiums are waived while survival and maturity benefits for the child continue.
- Loan, surrender value and paid‑up options after minimum premium payment period, giving liquidity if finances get tight.
This makes it an effective one-policy solution where parents want structured education cash flows and a final marriage lump sum with conservative, bonus-driven growth.
LIC Jeevan Tarun (734/934): flexible education–marriage balance
Jeevan Tarun is another non-linked, participating child plan that blends insurance and savings but offers four survival-benefit options so parents can choose how much to take between ages 20 and 24 versus at 25. This makes it more flexible for families who either want heavier payouts for education or a stronger lump sum for marriage.
Eligibility and basics
Aggregators and LIC-focused resources summarise Jeevan Tarun as:
- Entry age (child): roughly 0/90 days to 12 years.
- Maturity age: 25 years.
- Policy term: 25−age at entry years.
- Premium paying term: 20-age at entry (limited premium).
- Sum assured: minimum around ₹75,000, no formal upper limit.
Like the money-back plan, Jeevan Tarun is a with-profits traditional plan, sharing in LIC’s bonuses over the term.
Four survival benefit options
At proposal stage, the proposer selects one of four patterns for survival benefit (ages 20–24) and maturity at 25, all as a percentage of Basic Sum Assured:
| Option | Survival benefit (20–24 each year) | Maturity at 25 |
|---|---|---|
| 1 | 0% | 100% |
| 2 | 5% | 75% |
| 3 | 10% | 50% |
| 4 | 15% | 25% |
- Choosing Option 4 maximises annual payouts for education and hostel expenses while retaining a modest marriage corpus.
- Choosing Option 1 defers everything to a large lump sum at 25, suited to clients focused on marriage or business/start-up capital.
Protection, tax and rider features (including PWB rider and installment options for death benefit) are parallel to the children’s money-back design.
How to use LIC plans for a newborn’s education and marriage
For a newborn, LIC-type child plans work best when you treat them as foundation, not the entire portfolio, and align them tightly to age-linked goals.
- Lock in a long-term child plan early
Buying New Children’s Money Back or Jeevan Tarun for a 0–1 year-old ensures low premiums and maximises the period over which bonuses can accrue. - Map payouts to specific goals
- Add a second plan if needed
For ambitious education targets (foreign degrees, private medical, etc.), pair the LIC child plan with either a guaranteed-return endowment/guaranteed income plan or a ULIP like SIIP for higher equity exposure. - Always verify the live version
LIC frequently revises plan numbers and UINs; public resources in 2025 show children’s money-back and Jeevan Tarun under different plan codes (732/734 and 932/934) but the core benefit logic is consistent. Before recommending or buying, confirm current plan number, UIN, and availability on LIC’s official site or with an authorised agent.
Disclaimer: Plan names, numbers and features are as per LIC and major comparison portals as of 2025, and that readers must verify the latest details and other life insurance solutions truly fit your goals, risk profile, and tax position, or discuss your questions on life insurance and LIC policies directly at +91‑7832933580 before investing.
