LIC Scheme for Child

What is the LIC Scheme for a Child?

LIC (Life Insurance Corporation of India) offers child insurance plans that help parents save for their child's future needs, such as education, marriage, or other important milestones. These plans combine savings and protection, ensuring that funds are available when needed.

Key features of LIC's child plans include:

• Financial Support: Provide lump-sum or periodic payouts to assist with expenses at different stages of the child's life.
• Protection: In the unfortunate event of the policyholder's demise during the policy term, these plans offer death benefits to secure the child's financial future.
• Flexible Premiums: Options to choose premium payment frequencies that suit the policyholder's convenience.
• Tax Benefits: Premiums paid may be eligible for tax exemptions under Section 80C of the Income Tax Act.

Best LIC Policies for Children

Here is the list of some major LIC Schemes for a Child that you can consider to buy:

1. LIC's Amritbaal Plan

LIC's Amritbaal Plan is a non-linked, non-participating, individual savings life insurance policy designed to help parents build a financial corpus for their child's future needs, such as higher education or marriage. It offers guaranteed additions of ?80 per ?1,000 of the Basic Sum Assured annually, ensuring steady growth of the investment.

The plan provides flexible premium payment options, including single premium or limited premium payments over 5, 6, or 7 years.

Key Benefits of the best LIC policy for children are as follows:

Guaranteed Additions:

Earn ?80 per ?1,000 of Basic Sum Assured annually throughout the policy term.

Flexible Premium Payment Options:

Choose between a single premium or limited premium payments over 5, 6, or 7 years. Payment modes include yearly, half-yearly, quarterly, or monthly (auto-debit payment).

Customizable Maturity Age:

LIC scheme child maturity age ranges between 18 to 25 years. You can select the age that suits your child's future financial needs.

Death Benefit Options:

If the policyholder dies during the policy term, the plan offers death benefits, ensuring the child's financial security.

Premium Waiver Benefit Rider:

An optional rider that waives future premiums if the policyholder passes away, ensuring the policy continues without financial burden.

Loan Facility:

Address liquidity needs by availing loans against the policy after paying premiums for at least two years.

Settlement Options:

Opt to receive maturity or death benefits in instalments over 5, 10, or 15 years, providing flexibility in fund utilization.

Eligibility:

Available for children aged 30 days to 13 years, with a minimum sum assured of ?2,00,000 and no maximum limit, subject to underwriting.

2. LIC’s New Children’s Money Back Plan

LIC’s New Children’s Money Back Plan is a participating, non-linked money-back policy designed to support a child's financial milestones, such as education and marriage. It offers periodic payouts, life coverage, and maturity benefits, ensuring financial security for the child. Parents or grandparents can purchase this plan for children aged 0 to 12 years.

Some of the key features of LIC’s New Children’s Money Back Plan are as follows:

Eligibility:

Entry age from birth up to 12 years; policy matures when the child turns 25.

Policy Term:

25 years minus the child's age at entry

Sum Assured:

Minimum of ?1,00,000; no upper limit, subject to underwriting

Premium Payment Modes:

Yearly, half-yearly, quarterly, or monthly (via ECS).

Survival Benefits:

20% of the Basic Sum Assured (BSA) is paid at ages 18, 20, and 22, provided the policy is in force.

Death Benefit:

• Before commencement of risk: Refund of premiums paid, excluding taxes and rider premiums.
• After commencement of risk: Sum Assured on Death, ensuring a minimum of 105% of the total premiums paid.

Loan Facility:

Available after paying premiums for at least two full years.

Surrender Value:

Policy can be surrendered after two full years of premium payments.

Premium Waiver Benefit Rider:

Optional rider waiving future premiums if the proposer (aged 18–55) passes away during the policy term.

Tax Benefits:

Premiums qualify for deductions under Section 80C, and maturity/death benefits are tax-free under Section 10(10D).

3. LIC’s Jeevan Tarun

LIC’s Jeevan Tarun is a participating, non-linked, limited premium payment plan designed to provide both protection and savings for children. It offers annual Survival Benefits from ages 20 to 24 and a Maturity Benefit at age 25, catering to educational and other financial needs. The plan allows flexibility in choosing the proportion of benefits at the proposal stage.

Key features of this lic scheme for children are as follows:

Eligibility:

Entry age between 90 days and 12 years; policy matures at 25 years of age.

Policy & Premium Term:

Policy term is 25 years minus the child's entry age; premium paying term is 20 years minus entry age.

Sum Assured:

Minimum of ?75,000; no maximum limit, subject to underwriting.

Premium Payment Modes:

Yearly, half-yearly, quarterly, or monthly (via NACH).

Death Benefit:

• Before risk commencement: Refund of premiums paid (excluding taxes and extra premiums).
• After risk commencement: Sum Assured on Death (higher of 10 times the annual premium or 125% of the Basic Sum Assured), ensuring a minimum of 105% of total premiums paid.

Bonuses:

Eligible for Simple Reversionary Bonuses and Final Additional Bonus, if declared.

Loan Facility:

Available after paying premiums for at least two full years.

Surrender Value:

Policy can be surrendered after paying premiums for at least two full years.

Premium Waiver Benefit Rider:

An Optional rider waiving future premiums if the proposer passes away during the policy term.

Tax Benefits:

Premiums qualify for deductions under Section 80C, and maturity/death benefits are tax-free under Section 10(10D) of the Income Tax Act.

4. LIC Child Future Plan

LIC's Child Future Plan (Plan No. 185) is a money-back endowment policy designed to support a child's future financial needs, such as education and marriage. It offers life coverage during the policy term and an extended period of 7 years after maturity.

The plan provides periodic payouts and a lump sum at maturity, ensuring financial assistance at crucial stages of a child's life.

Features of this lic scheme for children are as follows:

Eligibility:

Entry age for the plan is 0–12 years, and the LIC scheme child maturity age is 23–27 years.

Sum Assured:

The sum assured ranges from ?1,00,000 to ?1,00,00,000.

Policy Term:

The policy term can be chosen between 11 to 27 years.

Premium Payment Term:

6 years or up to 5 years before the policy term ends.

Premium Payment Modes:

Quarterly, half-yearly, annually, or through salary deductions.

Survival Benefits:

• 25% of the Sum Assured is paid 5 years before policy expiry.
• 10% of the Sum Assured is paid annually at 4, 3, 2, and 1 year(s) before policy expiry.
• 50% of the Sum Assured plus bonuses are paid at policy maturity.

Death Benefits:

• Before risk commencement, return of premiums paid with 3% compounded interest.
• After risk commencement, the sum assured plus bonuses is paid.
• During the extended term, the Sum Assured is payable.

Auto Cover:

If at least two years' premiums are paid and subsequent premiums are unpaid, full death cover continues for 2 years from the due date of the first unpaid premium.

Premium Waiver Benefit:

Optional rider waiving future premiums if the proposer dies; benefits continue as per the policy.

Paid-Up Value:

If at least three years' premiums are paid and subsequent premiums are unpaid, the policy becomes paid-up with reduced benefits.

Surrender Value:

Policy can be surrendered after paying premiums for at least three full years.

Grace Period:

30 days allowed for premium payment.

5. LIC Child Plan Calculator

LIC provides various child insurance plans, and using a premium calculator makes it easier to choose the right one. These calculators help you estimate the premium and maturity amount based on factors like your child’s age, policy duration, and coverage amount.

Here are the steps by which you can access the LIC child plan calculator:

Visit the LIC Website:

Go to the official website of LIC.

Find the Premium Calculator:

Scroll to the section “How Much Do You Need” and click on “Calculate Premium”.

Enter Child's Information:

Fill in details such as your child's name, date of birth, and gender. Then click on “Next” followed by “Quick Quote”.

Select a Child Plan:

Under the “Child Plans” section, choose the policy you want to buy. Then click on the “Coverage” option.

View the Quote:

Provide the required information and click on “Quote” to see the premium details and benefits for the selected LIC child policy.

Conclusion

LIC schemes for children are specially designed to offer both protection and savings, ensuring a financially secure future for your child. Whether you are planning for higher education, marriage, or long-term investments, these plans provide a blend of guaranteed returns, life cover, and tax benefits.

With tools like the LIC child plan calculator, selecting the best LIC policy for children becomes simple and tailored to your needs. By investing in the right LIC scheme for children, you can safeguard your child’s dreams while enjoying peace of mind.