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LIC New Children’s Money Back Plan

LIC's new children money back plan/policy is an insurance cum investment plan which is used for securing the financial future needs of a child as they turn 25 years old. It is a participating plan and hence it is eligible for a bonus depending on the performance of LIC plan.

LIC’s New Children’s Money Back Plan is a traditional Money Back Child Plan designed to secure the child’s future even if the parent is not around. The child’s life is also protected through life insurance coverage.

LIC’s New Children’s Money Back Plan's Key Features

  • It is a participating plan with limited premium payment option
  • The Survival Benefits can be deferred after they accrue and can be received any time before the term where the value will be Survival Benefits% * Sum Assured* applicable Survival Benefit factor.
  • If the Life Assured is aged less than 8 years, the risk cover will commence one day before the completion of 2 years after commencement or one day before the policy anniversary coinciding with or following the completion of 8 years.
  • The policy will vest in the name of the Life Assured on the policy anniversary following the completion of 18 years of age.

LIC’s New Children’s Money Back Plan's Benefits

  • Survival Benefits @ 20% of the Sum Assured is payable on each policy anniversary when the life assured attains 18, 20 and 22 years.
  • On Maturity, 40% of the base Sum Assured + vested simple reversionary bonuses + Final Additional Bonus, if any, are paid.
  • On death of the life assured before the commencement of risk, the premiums paid are returned.
  • On death after the risk cover has begun, the Sum Assured (SA) on death + vested simple reversionary bonuses + Final Additional Bonus, if any, is payable subject to a minimum of 105% of all premiums paid till death.
  • SA on death will be higher of the basic Sum Assured or 10 times the annual premium.
  • Income tax benefit on the premium paid as per Section 80C and on the claims received as per Section 10(10D) of the Income Tax Act.

Product Specification:




Entry Age (Last Birthday)

0 years

12 years

Maturity Age (Last Birthday)


25 years

Policy Term (PT) in years

25 – entry age

Premium Paying Term (PPT) in years

7 pay, 10 pay or (term-5)

Premium Paying Frequency

Annual, half-yearly, quarterly, monthly



No limit

Sum Assured


No limit

Details About Premium

Annual premium in Rupees

Age / Sum Assured




0 year




5 years




10 years




12 years




Policy Details of LIC’s New Children’s Money Back Plan

Grace Period: 15 days’ grace period is allowed for premium payment in monthly mode and 30 days in other modes. If policyholder fails to make payment within the grace period, the policy lapses

Policy Termination or Surrender Benefit: Policyholder is allowed to surrender the policy and receive the Surrender Value after 3 completed years’ premiums have been paid. The Surrender Value will be higher of the Guaranteed Surrender Value (GSV) or the Special Surrender Value.

GSV = (GSV % of Premiums paid – Survival Benefits already paid) + GSV % of vested Bonuses

Free Look Period: If you would not be pleased with the coverage, and terms and conditions of the policy, you have the option of canceling the policy within 15 days of receipt of the policy documents, provided there has been no claim.


Loan is available under the plan.

Additional Features or Riders

  • LIC’s Premium Waiver Benefit Rider is available under the plan where the premium is waived off in case of death of the proposer.
  • Rebates in premiums for choosing yearly and half-yearly mode of premium payment @ 2% and 1% respectively.
  • High Sum Assured rebate for Sum Assured levels of 2 lakhs and above.


  • In case of suicide committed within 12 months of policy inception only 80% of premiums paid are returned to the nominee if the Life Assured was aged more than 8 years.
  • In case of suicide within 12 months of revival, higher of 80% of premiums paid or acquired Surrender Value is paid if the Life Assured was aged more than 8 years and the policy had acquired a paid-up value.

Documents Required

Policyholder has to fill up an ‘Application form/ proposal form’ with accurate medical history along with the address proof and other KYC documents. LIC company may be required Medical examination in some cases, based on the sum assured and the age of the person.

Written By: PolicyBazaar - Updated: 16 June 2020