LIC Child Plans

lic plans for child

LIC Plans for Child

Bringing up a child is every parent’s dream. Everyone wants to give their children the best of the world. And they try out all different things to make sure their child gets the best upbringing and is a winner through out his or her life. Educated and informed parent are now exploring the LIC Child Plans to make sure their child’s future is secure.

The cost of living is going up day by day and so is the cost of raising a child. Besides great values and exposure a great amount of money is pent on the education, professional and th marriage of the child. One must plan out their finances in a way that all the financial needs of the future are met when the time comes.

There are several existing and new plans being introduced by LIC of India from time to time to help the parents in doing the financial planning for their children in a systematic manner. A sound financial planning will not only be easy on the pocket but also make sure that you and the child are ready for the future.

The best child education plan not only supports the child in case of absence of parents but will be a kitty for medical treatment of child if the need arise.

Child Plans for Child

What is child education plan: a child education plan is a money kitty that you decide for your child’s higher studies. The cost of getting the higher education is not only competitive but also very expensive. A postgraduate degree which used to cost some 25000 a decade back is not anything from 2 – 5 lakhs. The cost of making your child a doctor or engineer is anywhere between 10 – 50 lakhs depending on the college reputation and the stream chosen.A child education plan will help you plan these expenses and through a step by step investment make is easy for yo u.

Child plan eligibility criteria

Advantage of a child plan: The child plan acts as a money backup that can be generated by taking small investment steps early in life. At the age of say 20-25 a child needs funds for various reasons be it education, setting up of a business or getting married. The best advantage of a child plan is that it is a separate kitty that one saves specifically for one’s children’s future needs. If a person starts investing early in life they get a lot of time to phase out their small investment into a big lump sum amount.

Useful tips to buy a child plan:

  1. The foremost thing that one needs to keep in mind is to opt for the maximum erm but the term should be planned in a way that you start getting the money when your child is around 23-25. This is the time that the child has the need for additional expenses.
  2. A child plan should be taken to take into consideration partial withdrawal in case of emergencies. This withdrawal can help a parent financially just in case the child needs some high-end medical assistance.
  3. The best time to start the child plan is the day the child is born, any investment after that may lead in lesser returns due to less time available till the child touch 23-25 age bracket, the time when the fund would be required.
  4. The most important term that one needs to take into consideration is that the plan must have the feature of complete premium waive off in case of the death of the parent.
  5. Another important thing one needs to be sure of i that the final sum assured is given to the child only on the term maturity. Many a times it happens that a person takes a child plan, he dies and all the claim is given to the nominee right at the time of the death. So when the child attains their youth they have no money left.


Do you really need a LIC plans for child? Yes, a everyone who has a child needs a child plan irrespective of what all other investments he has made. We plan out all our future financial needs like our marriage, home, retirement etc. but neglect the need of the child plan. Though only a child plan will help you child realize his or her dreams. A child plan is the best gift a parent can give to their child.

ALSO SEE  LIC Special Plans

Why buy a child plan? If you want your child to have a secure future, good education that he aspires to have you must buy a child plan. Everything in life requires monetary support, and a child plan will ensure that your child is never without that support.

What are the different types of child plans: ULIP and endowment child plans. Generally speaking there are two types of child plan like any other insurance or investment plan. One is secured plan with guaranteed returns and the other one is market lined plan. Though the returns on the guaranteed or the traditional plan has lower returns but the returns are 100% guaranteed where as in market linked plans the investment can row substantially or reduced to 0 depending on the prevailing market conditions.

How is it different from a term plan? A term plan only gives out a return in case of the death of the policy holder. The two things that separates a term plan from a child plan are that if nothing happens (i.e. the policy holder does not die within the term opted) the nominees get nothing. And the second important thing is that in case of the death of the policy holder the nominee gets the full settlement amount then and there itself. Then it is up to the nominee or the caretakers to save this settlement claim amount for the future needs which is a difficult task.

How a child insurance plan will secure your child’s future? Only a child plan can guarantee you that the child will be paid the amount that you decide at the time you want it to be given to the child. In fact you are making sure that a specific amount is available to the child no matter if you are there or not.

LIC of India has some really interesting children’s plans. The Children plans are crafted after a thorough research to help a individual plan out the future needs of children.

Be it their marriage, business or higher studies or any other goal that you have in your mind, LIC offers you plans to achieve those.

LIC Child Plans

New Children Money Back

What is New Children Money Back plan?

It is a money back plan, survival benefits will be paid @20% of the Sum Assured at each policy anniversary following the attainment of 18 years, 20 years and 22 years of age of the life insured. On maturity, 40% of the Sum Assured, vested simple reversionary bonuses and a Final Additional Bonus, if any, is paid to the policyholder.

LIC child plan which promises waiver of future premiums in case of death of the proposer

Rebate is given in premium rates if the policyholder chooses to pay yearly or half-yearly premiums @ 2% and 1% respectively

Tax benefit is available under the LIC child plan on the premium paid and the claim received. The premiums paid are exempt from taxation under Section 80C of the Income Tax Act and the claim received in exempt under Section 10(10D) of the Income Tax Act.

Who can buy?

New Children Money Back plan is specially designed for the children. Any person who wishes to secure his children’s future can opt for this.

What is the minimum and maximum age to buy?

The plan can be bought for children between the age of

Is loan available on the policy?

The policy has all the regular features of any other LIC plan like grace period, surrender, revival and loan.

Click here to get all the details of the New Children Money Back (832) plan. Check out the details like premium, maturity, loan, surrender etc. and buy.

Jeevan Tarun (834)

Single Premium Endowment (817) is a leading LIC of India advisory firm based in Gurgaon. Our team of life insurance experts have an combined experience of over 40 years in life insurance services. Do get in touch with our insurance advisers to understand how different Child Policy can help you achieve your financial goals for your children in a systematic manner.

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