Planning for your newborn’s future starts with securing their financial needs from quality education and higher studies to marriage and beyond. As of December 2025, Life Insurance Corporation of India (LIC) offers reliable child-focused traditional policies that combine life coverage with savings, free from market risks. The primary plans suitable for newborns and young children (entry from age 0 or shortly after) are LIC’s New Children’s Money Back Plan (Table 932) and LIC Jeevan Tarun (Table 934), both participating plans eligible for bonuses. Additionally, LIC Amritbaal (Table 874) – a non-participating plan with guaranteed additions, is ideal for those seeking predictable growth (entry from 30 days). For complementary family protection, consider LIC Jeevan Lakshya (Table 933), a parent-focused plan where benefits pass to the child as nominee.
These traditional policies may qualify for tax benefits under Section 80C (on premiums) and Section 10(10D) (on maturity/death benefits), subject to prevailing conditions like premium-to-sum-assured ratios and aggregate limits under current tax laws. Premiums depend on the child’s age, chosen sum assured, policy term, and payment frequency. Optional riders, such as premium waiver on the proposer’s death, are available at extra cost (subject to LIC’s underwriting rules). Information is based on the latest available data as of December 2025; always verify with official LIC brochures, as terms may update.
Risk coverage for the child follows plan-specific guidelines (typically starting from age 8 or after 2 policy years, whichever is earlier); consult the brochure for precise details.
Risk commencement for child lives follows plan-specific rules (often from the earlier of policy anniversary after age 8 or 2 years from commencement); refer to each plan’s brochure for exact wording.
Comparison Table: Entry Age, Premiums, and Future Benefits
| Scheme | Entry Age (Child) | Policy Term | Premium Payment Term | Minimum Sum Assured | Key Future Benefits Overview | Bonus/GA |
|---|---|---|---|---|---|---|
| LIC’s New Children’s Money Back Plan (Table 932) | 0-12 years | 25 – entry age (e.g., 25 years for newborn) | Same as policy term | ₹1,00,000 | Survival payouts (20% SA at ages 18,20,22) for education; maturity (40% SA + bonuses) for marriage/lump sum; death cover with bonuses. | Participating bonuses (not guaranteed) |
| LIC Jeevan Tarun (Table 934) | 90 days-12 years | 25 – entry age (e.g., 25 years for newborn) | 20 – entry age (limited pay) | ₹75,000 | Annual survival benefits between ages 20–24 as per one of four options (25%, 50%, 75% or 100% of Basic SA distributed across those years) for education/marriage; maturity (remaining SA + bonuses) as lump sum; death cover. | Participating bonuses (not guaranteed) |
| LIC Amritbaal (Table 874) | 30 days-13 years | Maturity age options typically 18–25 years (exact term depends on entry age and option) | Limited (e.g., 5-7 years) or single pay | As per current brochure (often ₹2,00,000 or more; confirm latest minimum) | No survival benefits during the term; maturity as lump sum (SA + guaranteed additions) for education/marriage; death cover with options for higher multiples. | Guaranteed additions (₹80 per ₹1,000 SA annually as per current brochure; subject to LIC updates) + discretionary bonuses |
Bonuses (simple reversionary and any final additional bonus) are declared annually by LIC and vary by plan, term, and valuation year. General features: Grace period (15-30 days), loan facility (up to 90% surrender value after 2 years), surrender option, revival within 5 years. Pros/Cons: Money Back and Tarun offer staged payouts for growing needs; Amritbaal provides guaranteed additions for predictability. All are conservative versus market-linked plans; illustrative benefit samples often fall between conservative 4% and optimistic 8% projection rates, as per IRDAI-style illustrations; these are projection assumptions, not guaranteed returns.
Future Benefits: Education, Marriage and Lump Sum Payouts Under Key LIC Child Schemes
These schemes emphasize future-oriented benefits to cover rising costs of education (e.g., higher studies, coaching) and marriage, with lump sum options for flexibility. Payouts are timed to align with typical milestones (ages 18-25), and bonuses/guaranteed additions enhance returns. Death benefits ensure continuity, often with premium waiver to protect the child’s plan.
1. LIC’s New Children’s Money Back Plan
- Education Support: Survival benefits (20% SA each at ages 18, 20, 22) can fund college admission, tuition, or skill courses. For example, with ₹5 Lakh SA, each payout ≈₹1 Lakh (plus potential bonuses).
- Marriage Support: The staggered payouts and maturity (40% SA + bonuses at age 25) provide funds for wedding expenses or dowry alternatives.
- Lump Sum Payouts: Maturity benefit as a single lump sum; option to defer survival benefits (with interest factors) for consolidated amounts.
- Death Benefits for Future: Immediate lump sum (SA + bonuses) to nominee; if before risk commencement, premium refund.
- Overall: Ideal for predictable milestones; typical long-term returns from traditional participating plans are conservative versus market-linked options. Across all survival and maturity benefits, 100% of Basic Sum Assured is paid out over the policy term, plus bonuses if declared.
2. LIC Jeevan Tarun
- Education Support: Customizable survival benefits between ages 20–24, based on one of four options in LIC’s brochure. In total, 25%, 50%, 75% or 100% of the Basic Sum Assured is distributed as annual payouts across those years, with the balance (if any) paid at maturity along with bonuses.
- Marriage Support: Annual payouts can accumulate for marriage; maturity (remaining SA + bonuses at age 25) as final boost.
- Lump Sum Payouts: Maturity as lump sum; in total, survival benefits plus maturity together equal 100% of Basic Sum Assured, with bonuses over and above this, depending on LIC’s performance.
- Death Benefits for Future: SA + bonuses immediately; minimum 105% premiums paid, ensuring funds for child’s needs.
- Overall: Flexible for varying needs; bonuses add value based on LIC’s performance.
3. LIC Amritbaal
- Education Support: Maturity lump sum (SA + guaranteed additions) at end of term (age 18-25) can cover higher education costs, with predictable growth from additions.
- Marriage Support: The full maturity payout provides a substantial sum for wedding or other milestones.
- Lump Sum Payouts: Entire benefit as single lump sum at maturity; no interim survival benefits.
- Death Benefits for Future: Higher of multiples of premium or SA + accrued additions, as per option chosen; some variants allow instalment payouts over 5/10/15 years.
- Overall: Strong for guaranteed growth; suitable for parents seeking certainty in returns.
Using LIC Jeevan Lakshya to Protect a New Born’s Future (Parent-Focused Cover)
LIC Jeevan Lakshya (Table 933) is a proposer-centric plan (parent as life assured, age 18-50) that indirectly funds the child as nominee/beneficiary. Policy term: 13-25 years; premium payment term: term minus 3 years; minimum SA: ₹1,00,000.
- Education Support: On proposer’s death, annual income benefit (10% SA/year till maturity) provides steady funds for schooling/college.
- Marriage Support: The income stream and final maturity lump sum (Basic Sum Assured plus bonuses at the end of term) can support major goals such as higher education or marriage.
- Lump Sum Payouts: Maturity benefit (SA + bonuses) as single payment if proposer survives; death triggers immediate SA on death + bonuses, plus ongoing annual income, and SA + bonuses at maturity.
- Death Benefits for Future: Dual protection; immediate lump sum (higher of 7x annualized premium or 105% premiums paid) + bonuses + annual income to child nominee, ensuring no disruption in education/marriage plans, as per policy conditions.
- Overall: Excels in “if parent not around” scenario for family protection; conservative returns similar to above.
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.
In summary, for newborns, Jeevan Tarun offers the most flexibility for education/marriage payouts, while New Children’s Money Back provides fixed milestones. Amritbaal emphasizes guaranteed additions, and Jeevan Lakshya adds strong parent protection. Consult an LIC advisor for personalized quotes, as benefits depend on health, SA, and current bonus rates.
