The Life Insurance Corporation of India is known for offering safe and reliable long term savings options for Indian families. Among its popular child focused plans, the LIC New Children Money Back Plan helps parents systematically build a sizeable corpus for their child’s education, higher studies, marriage and other major life goals.
By starting early and investing a small amount regularly, such as around Rs 150 per day, parents can aim to create a fund of nearly Rs 19 lakh over the full policy term, along with life cover for the child.
What Is LIC New Children Money Back Plan
LIC New Children Money Back Plan is a child centric life insurance and savings plan designed to help parents prepare financially for important milestones in their child’s life. It is a non linked, participating plan, which means:
- The policy is not linked to the stock market.
- The policy participates in LIC’s profits and can receive bonuses as per LIC rules.
The plan can be purchased for a child as young as a few months old up to 12 years of age. The parent or grandparent pays the premium, while the policy is issued in the child’s name. Over the chosen policy term, LIC provides:
- Periodic money back payouts at specific ages or years.
- A lump sum maturity benefit at the end of the term.
- Life cover for the child, subject to policy conditions.
This structure helps parents plan funds for school fees, higher education, professional courses, marriage and other major expenses.
Short Summary Of LIC New Children Money Back Plan
Particulars |
Details |
|---|---|
Scheme Name |
LIC New Children Money Back Plan |
Type of Plan |
Non linked, participating, child money back plan |
Objective |
To create a long term corpus for children’s education and future needs |
Entry Age of Child |
From 0 years (infant) up to 12 years |
Policy Holder |
Parent or grandparent, policy in the name of child |
Premium Example |
Around Rs 150 per day (about Rs 4,500 per month) |
Policy Term |
Typically around 25 years in this illustration |
Total Premium Paid |
Around Rs 14 lakh in 25 years (example illustration) |
Approximate Maturity Corpus |
Around Rs 19 lakh including bonuses (indicative) |
Key Benefits |
Money back at key ages, maturity benefit, life cover, bonuses |
Risk Level |
Low to moderate, with participating bonus potential |
Official Website |
How Investing Around Rs 150 Per Day Can Create A Rs 19 Lakh Fund
The article example explains how a small daily contribution can grow into a large corpus over time. Let us understand the illustration in simple terms:
- Daily contribution: About Rs 150
- Monthly contribution: Around Rs 4,500
- Yearly premium: Around Rs 55,000
- Policy term: Around 25 years
If the parent continues paying this premium regularly for the full term:
- Total premium paid in 25 years is approximately Rs 14 lakh.
- With bonuses and other benefits added by LIC, the maturity amount can grow to around Rs 19 lakh, subject to the actual bonus declared.
This amount can become a strong financial base for:
- Higher education in India or abroad.
- Professional courses like engineering, medical, management or other specialisations.
- Initial support for a start up, career move or relocation.
- Marriage related expenses.
The key message is that starting early and staying disciplined with a manageable premium can help build a sizeable corpus without causing heavy financial pressure on the family budget.
Key Features Of LIC New Children Money Back Plan
Some important features of this plan include:
- Child focused coverage
The policy is issued in the child’s name to secure funds for future needs. - Money back at regular intervals
The plan usually offers money back payouts at certain ages or at fixed intervals in the policy term, which can be used for school or college fees. - Maturity benefit at the end of term
At policy maturity, the remaining sum assured along with bonuses is paid, creating a large corpus. - Participating plan with bonuses
As a participating plan, it is eligible for bonuses declared by LIC, which can significantly increase the final amount. - Low risk structure
Since the plan is non linked, it is not exposed to market volatility, making it comfortable for conservative investors.
Why LIC New Children Money Back Plan Is Popular With Parents
Parents and guardians often prefer this plan for several reasons:
- Financial discipline
The requirement of regular premium payments encourages systematic savings over a long period, which many families find difficult to maintain otherwise. - Predictability and safety
LIC is a government backed institution with a long track record and high trust. The plan offers stable returns compared to high risk investment options. - Goal based planning
Money back benefits at key stages help families align payouts with important educational milestones of the child. - Life cover for emergencies
Subject to policy conditions, the plan also provides life insurance benefits, helping the family remain financially protected. - Tax benefits
Subject to prevailing tax laws, premiums and maturity amounts may be eligible for tax benefits. Families should consult a tax advisor for updated rules.
Important Points To Consider Before Investing
Before purchasing LIC New Children Money Back Plan, parents should keep the following in mind:
- Check the minimum and maximum sum assured allowed for the child’s age.
- Confirm the exact policy term and at which years the money back payouts will be given.
- Ask the LIC agent or branch to provide a detailed benefit illustration showing premiums, money back amounts and expected maturity.
- Ensure that premiums fit comfortably within the family budget for the full policy term.
- Remember that the final maturity amount depends on future bonus declarations, which cannot be guaranteed in advance.
Step By Step Process To Buy LIC New Children Money Back Plan
- Visit the official LIC website at www.licindia.in or contact the nearest LIC branch or authorised agent.
- Ask specifically for the LIC New Children Money Back Plan and request a detailed brochure and benefit illustration.
- Discuss the child’s age, desired sum assured, and preferred policy term with the LIC representative.
- Provide necessary documents such as identity proof, address proof, child’s birth certificate, and photographs.
- Fill in the proposal form carefully with accurate information about the child and parent.
- Pay the initial premium through cash, cheque, online payment or other accepted modes.
- Once the proposal is approved, LIC will issue the policy document, which should be stored safely.
Benefits Of Starting This Plan Early
Starting the plan when the child is very young offers several advantages:
- Lower premium rates compared to starting at an older age.
- Longer time for compounding of bonuses and benefits.
- Easy alignment of payouts with school and college stages.
- Lower overall financial burden due to spreading of payments.
Parents who plan early are in a stronger position to meet future education costs without heavy borrowing or last minute financial stress.
Frequently Asked Questions (FAQs)
1. What is LIC New Children Money Back Plan?
LIC New Children Money Back Plan is a non linked, participating child insurance and savings plan that helps parents build a corpus for their child’s future. It offers periodic money back benefits during the policy term, a maturity amount at the end, and life cover for the child, subject to policy terms and conditions.
2. How can Rs 150 per day grow to around Rs 19 lakh?
If a parent invests around Rs 150 per day, which is about Rs 4,500 per month, the yearly premium comes to around Rs 55,000. Over approximately 25 years, the total premium paid can be about Rs 14 lakh. With bonuses and other benefits added by LIC, the maturity value can reach around Rs 19 lakh in this illustration. Actual amounts depend on the exact policy details and bonus rates declared in future.
3. What is the minimum and maximum age of the child for this plan?
The plan can usually be taken for children from infancy up to 12 years of age. The exact age eligibility and policy term options should be confirmed with LIC or through the official website or brochure, as they may change over time.
4. What are the main advantages of LIC New Children Money Back Plan for parents?
The key benefits include disciplined long term savings, predictable money back payouts, a large maturity corpus, potential bonuses, life insurance protection for the child, and the trust associated with LIC. The plan also helps parents align payouts with important milestones such as school and college fees.
5. Where can I get accurate and updated information about this plan?
For accurate and updated information about LIC New Children Money Back Plan, including premium charts, benefits, and terms and conditions, visit the official LIC website www.licindia.in or contact an authorised LIC agent or nearest LIC branch. Always rely on official sources for final investment decisions.
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