LIC Child Plan (2025) — An Unbiased Financial Planner's Guide
As a financial planner, one of the most common questions I get is, “What is the best LIC plan for my child’s future?” It’s a critical decision, and the brochures don't always make it easy. This 2025 guide is my attempt to give you the unvarnished truth. We'll compare LIC's key child plans like Jeevan Tarun (Plan 934), New Children's Money Back Plan (Plan 932), and the new Amritbaal (Plan 874) with real numbers and worked examples, so you can choose with confidence.
At a Glance: LIC Child Plans Comparison (2025)
| Feature | Jeevan Tarun (Plan 934) | New Children’s Money Back (932) | Amritbaal (Plan 874) |
|---|---|---|---|
| Primary Goal | Flexible Higher Education Funding | Staggered Payouts for Milestones | Guaranteed Corpus Building |
| Entry Age | 90 days - 12 yrs | 0 - 12 yrs | 30 days - 13 yrs |
| Maturity Age | 25 years | 25 years | 18 to 25 years (flexible) |
| Key Benefit | Choice of 4 payout options from age 20-24 | Fixed 20% payouts at ages 18, 20, 22 | Guaranteed Additions (₹80/1000 SA) |
| Returns Type | Participating (Bonus-linked) | Participating (Bonus-linked) | Non-Participating (Guaranteed) |
| Premium Waiver Rider | Available | Available | Available |
| Best For | Parents wanting control over college funding flow. | Parents needing funds for 12th grade, college. | Risk-averse planners wanting a predictable lump sum. |
Deep Dive: LIC’s New Children’s Money Back Plan (932)
Eligibility & Policy Term
The LIC New Children's Money Back Plan (UIN: 512N296V02) is designed for children from birth (0 years) up to 12 years of age. The policy term is fixed to mature when the child turns 25. For example, if you buy the plan for a 5-year-old child, the policy term will be 20 years (25 - 5). For the official details, see the official brochure.
Survival Benefit Schedule with Example
This plan is structured to provide fixed payouts at key milestones in a child's educational journey. Here’s how it works with an example for a ₹5,00,000 Sum Assured policy taken for a 5-year-old child:
| Child's Age | Event | Payout (% of Sum Assured) | Amount Received |
|---|---|---|---|
| 18 | Higher Secondary / Entrance Exams | 20% | ₹1,00,000 |
| 20 | Undergraduate Degree Year 2/3 | 20% | ₹1,00,000 |
| 22 | Post-Graduate / Final Year | 20% | ₹1,00,000 |
| 25 | Maturity | 40% + Vested Bonuses | ₹2,00,000 + Bonuses |
My Take on This Plan
Deep Dive: LIC Jeevan Tarun — The Flexibility Champion
Jeevan Tarun (UIN: 512N292V02) is unique because it offers four different options for receiving survival benefits between the ages of 20 and 24, making it highly suitable for funding higher education. You can choose to receive a percentage of the sum assured annually or let it accumulate. Surrender and loan facilities are available after two full years of premium payment. Refer to the Jeevan Tarun brochure for more.
LIC Jeevan Tarun Options Explained
This plan's main advantage is its flexibility. At the time of proposal, you must choose one of four options for how the survival benefits are paid out:
- Option 1: No survival benefit. Receive 100% of the Sum Assured + bonuses at maturity (age 25).
- Option 2: Receive 5% of the Sum Assured every year from age 20 to 24. At maturity, receive the remaining 75% of the Sum Assured + bonuses.
- Option 3: Receive 10% of the Sum Assured every year from age 20 to 24. At maturity, receive the remaining 50% of the Sum Assured + bonuses.
- Option 4: Receive 15% of the Sum Assured every year from age 20 to 24. At maturity, receive the remaining 25% of the Sum Assured + bonuses.
Worked Example: Jeevan Tarun Premium & Maturity
Let's use our LIC Jeevan Tarun calculator logic for a real-world scenario:
- Child's Age: 3 years
- Parent's Age: 30 years
- Sum Assured: ₹5,00,000
- Policy Term: 22 years (25 - 3)
- Premium Paying Term: 17 years (20 - 3)
- Option Chosen: Option 2 (5% payout yearly from age 20)
Approx. Yearly Premium: ₹25,000
Total Premium Paid over 17 years: ~₹4.25 Lakh
Survival Benefits: You receive ₹25,000 every year at ages 20, 21, 22, 23, and 24 (totaling ₹1.25 Lakh).
Estimated Maturity Benefit at Age 25: ₹3,75,000 (remaining 75% SA) + Vested Bonuses + FAB ≈ ₹8,00,000.
Total Received: ~₹1.25 Lakh (survival) + ~₹8 Lakh (maturity) = ~₹9.25 Lakh.
Deep Dive: LIC Amritbaal (Plan 874) — A Modern Approach
LIC Amritbaal Plan 874 Details
LIC Amritbaal is a non-participating, non-linked, individual savings life insurance plan designed for children. Unlike traditional money-back plans, its primary focus is to build a guaranteed lump-sum amount for a future date.
Key Features & Eligibility
- Entry Age: 30 days to 13 years.
- Guaranteed Additions: A key feature is the Guaranteed Additions of ₹80 per thousand Basic Sum Assured, which accrue at the end of each policy year and are paid out at maturity. This provides a clear, predictable growth path.
- Maturity: The plan matures when the child reaches an age between 18 and 25, as chosen by the proposer.
- Payment Options: It offers both Single Premium and Limited Premium payment options (5, 6, or 7 years).
Amritbaal vs Jeevan Tarun: Corpus Building vs Staggered Payouts
The main difference between Amritbaal and plans like Jeevan Tarun or the Children's Money Back Plan is its structure. Amritbaal is built to deliver a single, substantial lump sum at maturity, enhanced by guaranteed additions. In contrast, the other plans are designed to provide staggered 'money-back' payments at specific milestones. Amritbaal is better for those who prefer to receive the entire corpus in one go for a major expense like post-graduate studies abroad or a wedding, rather than smaller, periodic payouts.
How Premium & Maturity are Calculated
LIC Child Plan vs. Private ULIP Child Plans
| Feature | LIC Child Plan (e.g., Jeevan Tarun) | Private ULIP (e.g., ICICI Smart Kid) |
|---|---|---|
| Return Type | Guaranteed + Non-Guaranteed Bonus (Low Risk) | Market-Linked (Higher Risk, Higher Potential) |
| Transparency | Opaque; bonus-dependent | Transparent; based on NAV |
| Flexibility | Limited (options chosen at start) | High (fund switching, top-ups) |
| Charges | Embedded in premium (less visible) | Explicit (premium allocation, policy admin, fund management) |
| Best For | Risk-averse parents seeking guarantees | Parents comfortable with equity risk for wealth creation |
My Take: If you want absolute peace of mind and are primarily looking for a safe savings tool, an LIC plan is unbeatable. If you have a higher risk appetite and are aiming for inflation-beating growth over 15+ years, a well-chosen ULIP could potentially generate a much larger corpus for your child.
Tax Treatment, Riders & Nomination
How to Buy & Things to Check
- Always verify the plan's UIN and read the official sales brochure.
- Understand the premium paying term vs. the policy term.
- Check the survival benefit payout schedule to ensure it matches your child's milestones.
Frequently Asked Questions
Resources & Downloads
Still not sure which funds to pick? That's completely normal. For a more personalized approach, I can help you get a curated list of funds based on your specific goals and risk profile.
Get My Personalized Fund List