Planning for a child's higher education, career, or future financial needs is one of the most important long-term financial goals for parents. Starting early allows investments more time to grow and reduces the financial burden when major expenses arise.
The Life Insurance Corporation of India (LIC) offers several child-focused insurance plans that combine life insurance protection with long-term savings. Depending on the plan selected, policyholders may receive guaranteed benefits, periodic payouts, or maturity benefits to support future education and other milestones.
Here's a closer look at three popular LIC child plans and the features they offer.
1. LIC Amritbaal (Plan No. 874)
LIC Amritbaal is one of the corporation's newer child-oriented plans designed to help parents build a financial corpus for higher education and other future goals.
Key Features
- Available for children from 30 days to 13 years of age.
- Policy terms generally range from 10 to 25 years.
- Maturity benefits are designed around the child's age, typically between 18 and 25 years, depending on the selected policy term.
- The plan includes Guaranteed Additions, which become part of the policy benefits subject to the plan's terms and conditions.
Suitable For
Parents looking for a long-term savings-oriented insurance plan with predictable benefit features.
2. LIC Children's Money Back Plan (Plan No. 832)
This plan is designed for parents who prefer receiving money at different stages of a child's education rather than waiting until maturity.
Key Features
- Available for children up to 12 years of age.
- Provides periodic survival benefits during the policy term.
- The remaining maturity benefit, along with applicable bonuses (subject to policy conditions), is paid at maturity.
Such periodic payouts may help parents meet expenses related to higher education or other important milestones.
Suitable For
Families expecting financial requirements at different stages of a child's education.
3. LIC Jeevan Tarun (Plan No. 834)
LIC Jeevan Tarun offers flexibility by allowing policyholders to choose how benefits are distributed during the later years of the policy.
Key Features
- Available for children from 90 days to 12 years.
- Offers multiple payout options, allowing policyholders to select different combinations of annual survival benefits and maturity benefits.
- Designed to support educational expenses while also providing a lump-sum maturity amount.
Suitable For
Parents seeking greater flexibility in planning future education expenses.
Premium Waiver Benefit Rider: An Important Add-On
While purchasing a child insurance plan, many financial advisors recommend evaluating the Premium Waiver Benefit (PWB) Rider, where available.
Under the terms of the rider, if the proposer (typically a parent) passes away during the policy term, future premiums may be waived while the policy continues, subject to the rider conditions.
This feature can help ensure that the child's planned financial benefits continue despite unforeseen circumstances.
Parents should carefully read the rider's terms, exclusions, and eligibility before purchasing.
Tax Benefits
Depending on the applicable provisions of the Income-tax Act and individual eligibility:
- Premiums paid may qualify for tax deductions under Section 80C, subject to prescribed limits and conditions.
- Eligible maturity proceeds may receive tax treatment under Section 10(10D), subject to prevailing tax laws and policy conditions.
Tax rules may change over time, so investors should verify the latest provisions before making financial decisions.
Which LIC Child Plan May Suit You?
| Financial Goal | Suitable Plan |
|---|---|
| Building a long-term education corpus | LIC Amritbaal |
| Receiving funds at different education milestones | LIC Children's Money Back Plan |
| Flexible payout structure | LIC Jeevan Tarun |
The right choice depends on your child's age, financial goals, premium affordability, and preferred payout structure.
The Bottom Line
LIC child plans can serve as long-term financial planning tools by combining life insurance with savings benefits. Plans such as LIC Amritbaal, LIC Children's Money Back Plan, and LIC Jeevan Tarun offer different features ranging from guaranteed additions and periodic payouts to flexible maturity options. Before selecting any policy, compare the benefits, premium commitment, policy term, rider options, and expected financial needs to determine which plan best aligns with your family's goals.
Disclaimer: This article is intended solely for informational purposes and should not be considered financial or insurance advice. Insurance products are subject to policy terms, conditions, exclusions, and applicable regulations. Benefits, tax treatment, and product features may change over time. Prospective buyers should read the official policy documents carefully and consult a qualified financial or insurance advisor before purchasing any insurance plan.
