Why LIC for Your Child Future?
Education costs in India are rising at 10-12% annually. An engineering degree that costs ₹8 lakh today will cost ₹25-30 lakh in 15 years. Medical education, MBA, and studying abroad are even more expensive. LIC children plans help you systematically build a corpus for your child future while ensuring the plan continues even if something happens to you.
The biggest advantage of LIC children plans is the premium waiver benefit — if the parent (policyholder) passes away, all future premiums are waived by LIC, but the policy continues and your child receives all benefits at the scheduled times. This is true financial protection for your child.
LIC Jeevan Tarun (Plan 934) — Best Children Plan
- Entry age of child: 0-12 years (the earlier you start, the lower the premium)
- Premium payment: Until child turns 20
- Survival benefits: 5% of sum assured at age 20, 10% at 21, 15% at 22, 20% at 23, and remaining 50% + bonuses at 25
- Death benefit (of parent): All future premiums waived. Policy continues. Child receives all survival benefits as scheduled
- Why it is best: Staggered payouts align perfectly with education milestones — college admission at 18-20, post-graduation at 22-24, career setup at 25. The premium waiver ensures your plan is not disrupted
LIC New Children Money Back Plan
- Entry age of child: 0-12 years
- Policy term: 25 years from date of commencement
- Survival benefits: Payouts at specific intervals during the policy term
- Maturity: Remaining sum assured + accumulated bonuses
- Risk cover: Starts from the date of commencement even though child is a minor. If policyholder (parent) dies, premiums are waived
When to Start a Child Plan?
- At birth (age 0) — Lowest premium. Maximum compounding time. ₹5,000/month for 20 years can build ₹25-30 lakh corpus
- Age 1-5 — Still very affordable. Good time to start if you missed at birth
- Age 6-10 — Premiums are higher but still reasonable. 10-15 years of compounding
- Age 11-12 — Last chance to enter LIC children plans. Higher premiums, shorter compounding. Consider SIP as an alternative or supplement
Pro tip: Combine LIC children plan with a SIP in equity mutual fund. The LIC plan provides guaranteed safety net + insurance. The SIP provides higher growth potential. Together, they create a robust education fund.
Get a personalized child plan recommendation — free consultation with our LIC agent.