LIC Fixed Deposit Plan 2025 for Child

LIC FD Plan 2025: LIC New Children Money Back Plan

LIC New Children Money Back Plan is a traditional, participating, non-linked policy designed for children to meet their financial needs for growth. It also offers survival benefits at maturity and risk cover within the policy duration. 

The purpose of buying a LIC insurance plan for children is to make sure the children receive a lump sum amount at the end of the term to pursue their dreams and life goals. LIC New Children Money Back Plan policy is a unique policy that fits the bill perfectly with additional risk coverage in case of the policyholder's unfortunate death. 

LIC New Children Money Back Plan at a Glance

The premium instalments must be paid as an advance for all chosen intervals. The minimum instalment amount for different payment modes is listed below:

Features of the LIC New Children Money Back Plan

The salient features of LIC New Children Money Back Plan include:

• A LIC's Premium Waiver Rider Plan is added to this policy which enables waiver of future premiums in case of proposer's untimely death. 

• As LIC New Children Money Back Plan is a participating type, the policyholder is eligible to avail bonuses, and premium is paid for the limited period of the plan. 

• LIC New Children Money Back Plan will vest in the child's name as the life assured and later becomes a policyholder after completing 18 years. 

• A loan can be borrowed against LIC New Children Money Back Plan.

• For children below 8 years, a deferment period is applicable for LIC New Children Money Back Plan. The risk coverage will commence one day before the completion of 2 years from the policy purchase date or one day before the policy anniversary, which aligns with or follows the completion of 8 years.

• Under LIC New Children Money Back Plan, a rebate is offered on premium rates if the policyholder opts for half-yearly or annual payments at 2% and 1%, respectively.

• Tax exemptions are applicable on LIC New Children Money Back Plan on the premium payments and the claim benefits received. The premiums are tax exempted under section 80C and claim benefits under section 10(10D) of the Income Tax Act. 

• For availing of rebates, the proposer has to choose a high sum assured of Rs 5 lakhs and above under LIC New Children Money Back Plan.

• LIC New Children Money Back Plan policy can be surrendered at any time once the policyholder completes one year of premium payments. In this case, LIC will pay a surrender value equal to a higher guaranteed surrender value or unique surrender value. The surrender value is reviewed from time to time and revised accordingly, subject to the approval of IRDAI.

• If LIC New Children Money Back Plan premiums have been duly paid for less than two years, and the subsequent premium payments are not made within the grace period, the LIC will not be liable to pay any amount. 

• There is a free look period where the LIC New Children Money Back Plan policy can be cancelled within 30 days of receiving policy confirmation documents. This can be done if you are not satisfied with the coverage, benefits, and conditions applied for the procedure. 

• In case of suicide committed within one year of policy inception, only 80% of the premium paid is returned to the nominee if the insured has crossed 8 years of age. For a suicide committed within one year of policy revival, a higher of 80% of the premium paid or acquired surrender value will be paid to the insured who has crossed eight years of age, and the policy has achieved paid-up value. 

Benefits of the LIC New Children Money Back Plan

The main benefits of availing LIC New Children Money Back Plan are:

Death benefits
In the case of the untimely death of the insured during the policy term, the following benefits will be applicable subject to no dues on the premium payments: 

• Death before the risk commencement date: An amount equal to the premium amounts paid excluding taxes, extra, and rider premium, if any is paid. 

• Death after the risk commencement date: Death benefit stated as "Sum Assured on Death" plus the additional bonuses, including the simple reversionary bonus and final additional bonus will be paid. The "Sum Assured on Death" declared will be higher than the basic sum assured or 7 times multiplied by yearly premium payments. The death benefit paid must not be less than 105% of the total premium paid up to the insured's death. 

Survival Benefits
Suppose the insured survives until each policy anniversary aligning or immediately after completing 18, 20, and 22 years. In that case, 20% of the basic sum assured on each occasion will be paid subject to no dues on the premium payments.

Maturity Benefits
If the insured survives the LIC New Children Money Back Plan term, then "Sum Assured on Maturity" plus vested simple reversionary bonuses and final additional bonus will be paid subject to no dues on the premium payments.

Participation in Profits
LIC New Children Money Back Plan policy is a participation type and will participate in the corporation's profits. Accordingly, the policyholders will receive simple reversionary bonuses declared based on the corporation's experience. A final additional bonus may also be awarded in the year when the policy reaches maturity or the insured has passed away. 

Eligibility for LIC New Children Money Back Plan

The following eligibility criteria have to be met to avail LIC New Children Money Back Plan:

• The minimum entry age limit for the child is 0 years (at birth) and the maximum entry age limit of availing of this plan is 12 years.

• The maximum age of the child at maturity must be 25 years. 

• The policy term considered is 25 years – the entry age of the child. 

• The minimum sum assured is Rs 2 lakh. There is no limit for the maximum sum assured.

Documents Required to Buy LIC New Children Money Back Plan 

 The different documents required to avail LIC New Children Money Back Plan are: 

• A duly filled LIC New Children Money Back Plan application or proposal form. 

• Residential proof and other KYC documents of the proposer. 

• A medical examination may be conducted in some cases based on the sum assured and the applicant's age. 

LIC Jeevan Tarun

LIC Jeevan Tarun is a child insurance plan that combines life protection with savings. It is specially designed to help parents build a financial cushion for their child’s growing needs, especially education and life milestones.

Key Benefits of LIC Jeevan Tarun:

• Survival Benefits: The plan offers periodic payouts during the policy term — a fixed percentage of the sum assured. These payouts can support school fees, coaching, skill training, and other child-related expenses.

• Maturity Benefit: At the end of the policy, the child receives the remaining sum assured plus any bonuses. This lump sum amount can be used for higher education or starting a career.

• Customizable Payout Options: You can choose from four benefit options at the beginning. These define how much will be paid during the policy term (from 5% to 20% of the sum assured annually).

• Limited Premium Payment: You don’t have to pay premiums for the entire term. Premiums stop after a few years, but the benefits continue.

• LIC Jeevan Tarun is ideal for parents who want steady support for their child's school and college years, with both periodic income and final maturity benefits.

LIC Amritbaal

LIC Amritbaal is a child-focused savings and protection plan that offers guaranteed returns and flexible maturity options. It helps parents save consistently for their child’s future goals while offering financial protection.

Key Benefits of LIC Amritbaal:

• Guaranteed Additions: Earn ₹80 per ₹1,000 sum assured every policy year, ensuring your savings grow steadily.

• Flexible Maturity Age: Choose when your child receives the benefit — anytime between 18 and 25 years of age.

• Premium Payment Flexibility: Pay once or opt for limited premium payments based on your convenience.

• Lump Sum or Installments: At maturity, receive the benefit as a lump sum or in smaller instalments, depending on what suits your child’s plans.

• Optional Rider for Security: Add the Premium Waiver Benefit rider to ensure the plan continues even if something happens to the parent.

• Loan Facility: Borrow against the policy if a financial need arises during the term.

LIC Amritbaal is one of the best LIC plans for child development, giving your child a secure financial start with the assurance of fixed yearly returns.

How to Purchase LIC Child Plans? 

The LIC child plans can be purchased by following the steps below: 

Step 1: Visit the official website of the LIC.

Step 2: On the homepage, click on the ‘Buy Policies Online’ option to view the list of plans available for online purchase.

Step 3: Under “What Insurance Are You Looking For?”, browse through the available plans and choose the one that suits your needs.

Step 4: Once you select a plan, click on the ‘Buy Online’ button next to it to proceed.

Step 5: Fill in the proposal form with your personal, financial, and medical details as required by the policy.

Step 6: Submit the necessary documents such as identity proof, address proof, PAN card, and photographs as instructed.

Step 7: Pay using your preferred method, such as net banking, UPI, debit card, or credit card.

After successful payment and verification, you will receive confirmation, and the soft copy of your policy document will be emailed to you. A physical copy may also be sent to your registered address.

LIC Child Plans for Shorter Tenure 

LIC offers a range of short-term plans, such as the LIC fixed deposit for 5 years and LIC fixed deposit for 10 years, designed for individuals seeking life insurance coverage and a defined savings or investment period. These plans provide financial protection to your loved ones if an unforeseen event occurs during the chosen term, while also accumulating a corpus that is paid out as a maturity benefit if you survive the policy duration. 

If you aim for short-term financial goals like a down payment or accumulating funds over a medium term for specific objectives, these LIC plans offer security with potential returns. They provide benefits like tax deductions on premiums and tax-exempt maturity proceeds, making them attractive choices for diverse financial planning needs.

Wrapping it Up

As we have discussed some of the best LIC fixed deposit plan 2025 options for child, the LIC insurance plan for children is a significant investment that can secure their future, as these plans provide a substantial corpus. These plans are unique and specifically designed with multiple features like maturity, survival, death, and participation benefits. They offer financial protection and help inculcate long-term savings habits, ensuring that your child’s educational and personal milestones are never compromised.

LIC Resources

FAQs