LIC Child Plans: 3 excellent schemes for children's education and future—find out which one is best for you..

Details of LIC's Best Child Plans: Timely financial planning is crucial for meeting major financial goals related to children, such as higher education, career, and marriage. The Life Insurance Corporation of India (LIC) offers several specialized schemes to secure children's futures. These plans provide options ranging from guaranteed returns to flexible money-back benefits and lump-sum maturity payouts.

If you are planning to invest for your child's secure future, consider the features and a comparison of these three popular LIC child plans.

1. LIC Amritbaal (Plan No: 874) – A savings tool with guaranteed additions

LIC's Amritbaal plan is specifically designed to build a substantial fund for a child's higher education. It offers fixed, guaranteed returns, insulating the investment from market risks.

Eligibility Age: For children aged between 30 days and 13 years.

Key Feature: The plan's standout feature (USP) is the guaranteed addition of ₹80 per ₹1,000 of the Sum Assured. This amount is added to the policy annually throughout the policy term, making it highly attractive compared to other traditional plans available in the market.

Maturity Age: Maturity benefits can be availed when the child is between 18 and 25 years of age.

Premium Payment Options: It offers both single premium and limited premium payment options (5, 6, or 7 years).

Best For: This is an ideal option for parents seeking a substantial lump-sum amount for their child's education, combined with guaranteed, high returns and zero market risk.

2. LIC New Children's Money Back Plan (Plan No: 732) – A scheme with timely payouts

This is a traditional money-back insurance policy that provides liquidity (money-back payouts) at intervals to meet financial needs during key milestones in a child's career.

Eligibility Age: For children aged 0 (newborn) to 12 years.

Money-back Schedule: When the child turns 18, 20, and 22, a payout equal to 20% of the Sum Assured is made each time. These amounts prove very helpful in covering college admission and graduation expenses.

Maturity Payout: Upon the child attaining the age of 25, the remaining 40% of the Sum Assured, along with the entire accumulated bonus (Simple Reversionary Bonus + Final Additional Bonus), is paid out as a lump sum.

Suitable for: Parents who anticipate a need for funds at intervals during their child's graduation and post-graduation years, following the completion of school education.

3. LIC Jeevan Tarun (Plan No: 734) – Option for flexible payouts

LIC Jeevan Tarun is a non-linked, participating, individual life assurance plan. This scheme offers parents the flexibility to choose survival benefits and maturity options based on their specific needs.

Eligibility Age: For children aged 90 days to 12 years.

Four Flexible Options:

Option 1: No money-back payout between the ages of 20 and 24. At age 25, receive 100% of the Sum Assured plus the full bonus in a lump sum.

Option 2: Receive 5% of the Sum Assured annually from age 20 to 24, and 75% of the Sum Assured plus the bonus at age 25.

Option 3: Receive 10% of the Sum Assured annually from age 20 to 24, and 50% of the Sum Assured plus the bonus at age 25.

Option 4: Receive 15% of the Sum Assured annually from age 20 to 24, and 25% of the Sum Assured plus the bonus at age 25.

Who is this for? Parents who wish to decide, based on their convenience, whether they prefer regular income during the interim period or a large lump-sum amount at the end.

Make sure to include the Premium Waiver Benefit.

Do not forget to opt for the Premium Waiver Benefit Rider when purchasing any LIC child plan. Under this rider, if any unfortunate event befalls the proposer (parent) during the policy term, all future premiums are waived. The policy continues without interruption, ensuring the child receives the full maturity benefit at the scheduled time.

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