Review of LIC New Children’s Money Back Policy

Parents and even grandparents can buy this LIC policy for a child, and it pays out at specific milestones during the policy term, not just once at the end - which is what makes it a genuinely useful LIC money back plan for families planning around real, staggered expenses like school fees, higher education, or marriage.

"My wife bought this LIC child plan when our daughter was born. Twenty-five years later, the maturity payout helped us support our daughter's business idea without either of us taking on a loan," says Manoj Tyagi, one of the policyholders who chose this LIC New Children's Money Back plan through Policybazaar.

What are the Key Features of LIC New Children’s Money Back Policy?

LIC's New Children's Money Back policy is a money back plan by LIC that not only provides risk protection but also acts as a savings option as periodic money-back benefits. A few salient key features of the LIC plan are given below:

• Dual Benefits: The policyholder receives both a risk cover and a money back option in the New Children’s Money Back policy. So a death benefit and survival benefits are payable under different circumstances under the same policy.

• Flexibility to Choose: The LIC policy offers the policyholders to choose the premium payment frequency, method of receiving benefits and optional riders to increase risk cover.

• Money Back: LIC provides money back benefits at certain intervals during the policy term if the life assured survives the certain policy year. A specific percentage of the basic sum assured given to the life assured is paid as a survival benefit that helps the policyholder cope with growing financial needs.

• Premium Waiver Benefit: If the policyholder’s proposer i.e. legal guardian dies, then the future premiums are waived off for the life assured but the policy continues to remain in-force.

• Participation in Profits: New Children’s Money Back LIC policy shares the corporation’s profits as it is a participating policy. The policy customers avail the bonus payable (if any) at the time of benefit claims.

Note: LIC New Children’s Money Back 732 plan is the latest version of LIC 832 plan. To find LIC Children’s Money Back plan 832 policy details review, visit LIC’s official website.

What is the Eligibility Criteria for the LIC New Children’s Money Back Plan?

The eligibility criteria for New Children’s Money Back 732 policy is given below for your reference:

Note: Potential policyholders can use LIC child plan calculator for the LIC New Children’s Money Back 732 to receive estimation of premiums.

What are the Benefits of LIC's New Children’s Money Back Plan?

• Death Benefit
  If the policyholder dies, the Death Benefit is paid to the nominee. If the policy is in-force and all due premiums have been paid, then the sum assured on death is equal to the:

  • Basic sum assured

  • 7 times of annualized premium

  Vested Simple Reversionary Bonuses and Final Additional Bonus are also payable (if any) along with the sum assured on death.

• Survival Benefit
  When the life assured survives the specific policy anniversary of 18, 20 and 22 years of age, then a survival benefit of 20 percent of the basic sum assured is paid if the LIC New Children’s Money Back plan is in force.

• Maturity Benefit
  The policy offers a maturity benefit if the policyholder survives the end of the policy term. The maturity amount includes the sum assured on maturity and any accrued bonuses. Sum assured on maturity is 40% of the basic sum assured. This amount can be useful for funding the child's education, marriage, or other financial goals.

• Tax Benefits
  One can also avail of tax benefits on the premiums paid under the LIC Money Back Policy.

LIC Resources

Is the LIC Money Back Policy a Good or Bad Option?

LIC Money Back policies give you life insurance and regular cash payouts, but they offer lower financial growth than other investments. With its several benefits, the plan was designed to look after the financial needs of the children and help them to fulfil all their future goals.

FAQ's