LIC Child Plans

What are LIC Child Plans?

LIC Child Plans offered by the LIC of India are simple financial solutions to manage children's education, marriage, or any other milestones. These plans are targeted at providing financial protection, creating savings and investment avenues for the children's future.

Life Insurance Corporation of India child plans cater to the financial needs of children as well as their future goals. In addition, these plans offer financial protection, savings and investment avenues for the children's education, marriage or any other milestones. Such life insurance plans help either to get a lump sum amount or to have regular payouts, thus assisting the parents in accumulating money for the future needs of the child. If the policyholder dies during the term of the policy, the child is provided with financial security through death benefits in such plans.

Key Features of LIC Child Plans

• Premium Waiver Benefit: One of the features of LIC child plans is the Premium Waiver Benefit, which provisions that the policy will continue to be in force even if the parent is not able to pay premiums due to unforeseen circumstances. This shield of benefits for the child remains a hallmark of the best child insurance plan options available today.

• Deferment Option: The deferment option allows the disbursement period to be synchronized with major milestones such as a higher education. This systematic way of ensuring funds is one of a multitude of reasons why families have a preference for the plans which are considered the best child insurance plan in India.

• Loan Facility: Under the LIC child plans, there is a facility of a loan by which the parents can obtain the required amount during the times of financial crisis without the need of surrendering the policy.

• Bonuses: The LIC child plan, if participating, will be entitled to bonuses that will add to the total maturity value. On account of the profit, sharing which is a bonus, some options are looked upon as the best child policy in LIC of india.

• Tax Benefits: Apart from savings and protection, these plans serve the purpose of offering tax benefits under Sections 80C and 10(10D).

Best Child Insurance Plans Offered by LIC

Here is a list of some of the best child insurance plans offered by LIC:

LIC SIIP Plan 752

This unit-linked insurance plan means the insurance holder must invest in the equity market to grow their wealth. The insurance buyer can choose a policy term that aligns with their child’s education goals. Once they hit that age and the policy matures, they can receive the accumulated returns and the fund value in instalments or as a lump sum, depending on the circumstances.

Benefits of LIC SIIP Plan

LIC SIIP gives policyholders the option to allocate their premiums to different investment funds like equity, debt, or balanced funds. Such investments may yield higher returns in the long run and thus facilitate wealth creation. If the policyholder passes away during the policy term, his/her family will be paid the benefit amount.

Once the lock-in period is over, policyholders can avail themselves of the partial withdrawal facility from their accumulated fund value in case of any financial emergencies or immediate financial needs.

Moreover, the plan is flexible with regard to premium payment frequency (monthly, quarterly, half, yearly, or yearly) and the selection of investment funds. Depending on their investment preferences and the market conditions, policyholders can change the funds they are invested in.

LIC New Jeevan Anand 715

LIC New Jeevan Anand is an endowment plan that provides a combination of life protection and savings. These plans provide your child with financial protection if something happens to you, as well as on the other hand allows the policyholder to plan for their child’s future through maturity benefits.

Benefits of LIC’s New Jeevan Anand Plan:

• At the end of the policy term, the plan pays a maturity benefit to the policyholder, which is the sum assured along with the bonuses, if any. The money so received in one go can be used for different purposes like retirement planning, fulfilling life goals, or any other need of the moment.

• If the policyholder dies during the term of the policy, the plan shall grant the death benefit to the nominee, which shall be the greater of the sum assured or the accumulated value of the policy. This will ensure that your girl child and boy child will have financial protection and can take care of their immediate financial needs.

• Even post the expiry of the policy term, LIC New Jeevan Anand goes on giving life cover for the whole life of the policyholder. On the death of the policyholder, the death benefit is given to the nominee, thus giving the family a little more financial security.

LIC New Children’s Money Back Plan 732

LIC New Children’s Money Back Plan meets the needs like wedding, education, and other requirements of the kids through Survival Benefits. Besides, it provides a risk cover on child's life for the policy term and gives survival benefits if the child is still alive at the end of the stipulated duration.

Benefits of LIC’s New Children’s Money-Back Plan:

• The plan provides regular money-back instalments to the policyholder throughout the policy term. Such money, back payments, can facilitate meeting of various financial demands like education costs, extracurricular activities or other milestones in the child's life.

• In case of the policyholder surviving, the plan issues a single payout as the maturity benefit at the end of the policy term. A lump sum thus received can be put to higher education, marriage, or any other financial necessity of the child.

• If unfortunately, the policyholder dies, the plan offers waiver of future premiums and keeps providing life insurance cover for the remaining period of the policy. Thus the financially needs of the child are taken care of even if the parent is not there.

LIC Jeevan Tarun 734

LIC Jeevan Tarun is a limited premium payment plan which offers the combined benefit of savings and life protection features for children. The plan caters to growing children's educational and other financial needs.

Benefits of LIC Jeevan Tarun Plan:

• The plan entails giving a portion of the sum assured to the child at regular intervals during the policy term which can help the child in meeting various requirements such as education fees, skill development, or any other financial needs that may arise as the child grows up.

• On the policy maturity, the child is entitled to the balance sum assured including any bonuses that may have been accrued. This amount can be utilized for the child's future plans, say for instance, to get a higher education or even starting a business.

• LIC Jeevan Tarun allows flexibility in the selection of the benefit pattern. At the start of the policy, the policyholder decides on one of the four benefit options to determine the percentage of the sum assured that will be paid as survival benefits. The choice of options varies from 5% to 20% of the sum assured.

LIC Bima Jyoti 760

LIC Bima Jyoti is a savings cum protection plan which enables parents to secure their child's future. The LIC child plan provides annual guaranteed returns, thus it is a perfect option for long-term objectives like education or marriage.

Benefits of LIC LIC Bima Jyoti Plan:

Following are the benefits that you can get from LIC Bima Jyoti:

• This LIC plan provides a life cover along with guaranteed yearly additions of 50 per 1,000 sum assured, thus you can accumulate steady growth for your child's future.

• Besides, you can pay the premiums monthly, quarterly, half-yearly, or annually, as per your convenience, and decide whether you want to receive the maturity amount in one go or in regular instalments.

• What's more, you may add optional riders such as accident or critical illness coverage, and loans are also allowed when required.

• If the death occurs during the policy tenure, the nominee will be paid the full sum assured plus all accrued guaranteed additions, thereby providing the family with financial stability.

LIC Amritbaal 774

LIC Amritbaal is a savings and protection plan specially designed for children's needs. It offers guaranteed additions and flexible options, making it a great LIC plan for child development.

Benefits of LIC Amritbaal:

• Earn guaranteed additions of ₹80 per ₹1,000 sum assured every year, helping build a strong financial foundation over time.

• Choose a maturity age between 18 and 25, with the convenience of single or limited premium payment options.

• You can receive the maturity amount as a lump sum or in instalments, and for added security, you can enhance the plan with a Premium Waiver Benefit rider.

• A loan facility is available to help you manage unexpected financial needs during the policy term.

• This LIC new scheme for children helps parents plan their child’s future without financial stress.

LIC New Endowment Plus

LIC New Endowment Plus mixes investment freedom with insurance, positioning itself as a versatile LIC policy for children within the family of LIC plans for children. LIC’s New Endowment Plus policy offers four types of investment funds, Bond Fund, Secured Fund, Balanced Fund and Growth Fund, allowing policyholders to choose how their money is allocated.

Benefits of LIC New Endowment Plus:

• Choose from equity or debt-focused funds. This aligns the investment with your risk profile.

• Life cover lasts till the end of the policy. On death, the higher of the sum assured or fund value is paid.

• A maturity payout of the amount equal to the Unit Fund Value on the maturity date will be payable if the life insured survives the policy term.

• Partial withdrawals are allowed after the lock-in period. It is useful for urgent needs or education-related expenses.

• You can add an accident rider for extra protection to enhance your safety net.

Benefits of LIC Child Plans

• Supports Child's Educational Expenses
  If the policy covers the parent’s life, the insurance company immediately pays the death benefit amount on their demise. At the end of the policy term, it pays the child the assured fund value or maturity amount. These payouts help to comfortably take care of the educational expenses in the absence of the breadwinner parent.

• Helps Fund Higher Education & Marriage
  The cost of education with with inflation, college and higher education fees can burden the family. If a parent takes a child plan when the child is small, the money-back under a LIC child education plan can be aligned to the child's higher educational requirements.
  One may also use the lump sum for their child’s marriage.

• Avoids Capital Erosion
  With LIC child plans such as SIIP, you can choose how you want your money to be invested. You can choose from 4 fund options based on your risk appetite. These plans are a great option for anyone who wants to invest a small amount regularly and benefit from the market-linked returns.

• Flexible Payout Options
  LIC child plans allow you to choose whether to get your payouts as a lump sum or as regular instalments. This flexibility makes a LIC child scheme quite suitable for a range of financial needs, whether one-time expenses or ongoing costs. It gives the parents the freedom to plan for school, college, or other goals.

• Loan Facility
  Several LIC children's policies include a loan facility after a certain lock-in period. This can be really helpful in an emergency without disturbing long-term savings. A LIC new child plan with loan options means you will have financial assistance even in your toughest situation.

• Tax Benefits
  LIC plans for kids come with tax benefits under Section 80C, helping reduce your taxable income. Maturity proceeds may also be exempt under Section 10(10D), depending on the plan. A new LIC policy for child offers both security and smart tax planning.

Why Choose LIC Child Plans?

Let's understand this with an example:

Mr. A, with a child currently aged 5 years, buys a child plan with a 20 years tenure. The child policy promises money-backs on the 15th, 17th, and 20th policy anniversary. Mr. A planned the money-back periods to coincide with the child's educational milestones.

This way, he would receive the funds when the child reaches 20 years, 22 years, and 25 years. The funds will be utilised to take care of the higher education of his child.

If Mr A dies, the plan will not be terminated, and future premiums and the money-backs will be paid as and when promised. Thus, the money will be utilised only for the child's education, which was the actual rationale behind buying the child education plan.

LIC Resources

FAQs