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  • LIC New Children Money Back Plan

     Children are the future of our world, and as parents, most of us strive to provide sufficient platforms for our children to excel in life. The New Children’s Money Back Plan from LIC is a unique plan designed to cater to multiple needs of growing children, including their education, wedding, etc. This participating, non-linked money back scheme offers survival benefits in addition to the risk cover for children.

    Eligibility Criteria for LIC’s New Children’s Money Back Plan

    Individuals who are keen on participating in this policy need to keep the following basic criteria in mind.

    Minimum entry age 0 years (at birth)
    Maximum entry age 12 years
    Age at maturity 25 years

    Key Features of LIC’s New Children’s Money Back Plan

    Some of the salient features of this scheme are mentioned below.

    Plan type

    Participating non-linked money back scheme

    Plan basis


    Policy term

    25 years minus entry age

    Example, if entry age is 5 years, then policy term is (25-7) = 18 years

    Maturity benefits

    A maturity benefit equivalent to the sum assured and applicable bonuses will be paid

    Premium payment frequency

    Monthly, quarterly, half-yearly or annually


    Policyholders can avail a loan through the policy

    Grace period

    • 15 days for monthly payment option
    • 30 days for other payment modes

    Free look/cooling off period

    Individuals can choose to return the policy within 15 days of purchasing it


    Lapsed policies can be revived within 2 years of first unpaid due by paying the entire pending amount

    Sum assured

    Minimum - Rs 1 lakh

    Maximum – No upper limit

    Policy coverage

    Death benefit, maturity benefit and survival benefit

    Benefits of LIC’s New Children’s Money Back Plan

    A few of the benefits offered by LIC’s New Children’s Money Back Plan are mentioned below.

    • Maturity Benefit – A maturity benefit equivalent to the sum assured and all bonuses accrued during this period will be paid.
    • Survival Benefit – A survival benefit, equivalent to 20% of the basic sum assured will be paid when the life assured reaches certain age milestones.
    • Death Benefit – In the unfortunate event of the life assured passing away after risk commencement while the policy is in force, the sum assured on death and any accrued bonuses will be paid.
    • Corporation Profits – Policyholders are eligible to participate in profits earned by LIC, earning bonuses through the same.
    • Surrender Value – Individuals can surrender the policy (after completion of 3 years) to get an assured surrender value.
    • Rebates – LIC provides a rebate on high premium amounts, helping one save money.
    • Loan – One can avail a loan under this policy, helping them cater to emergencies.

    Working of LIC’s New Children’s Money Back Plan

    Let us consider the example of Mr and Mrs Gupta, parents of 1 year old Akash, to understand how this plan works. The couple work as managers and are well off, but they opt for the plan to ensure that the financial needs of Akash are met in the future. They opt for a basic sum assured equivalent to Rs 15 lakh, paying a premium of Rs 25,000 per year for the same (approximately). He pays this amount regularly, ensuring that the policy doesn’t lapse. As part of the benefits, he receives 20% or 3 lakhs when Akash reaches the age of 18 years. He gets additional survival benefits of Rs 3 lakhs each when Akash turns 20 and 22 years. When Akash reaches the age of 25 years, he will get a sum equivalent to the pending 40% of the sum assured, i.e., Rs 6 lakhs plus any additional benefits which have been accrued.

    In the case of untimely demise of Akash during the policy period, a death benefit will be paid to the parents, if the death occurs after the risk period has commenced. In the case of demise before commencement of risk period, the premiums paid will be returned.

    Premium Payment for LIC’s New Children’s Money Back Plan

    Members who have opted for this policy are expected to pay the premium for the full policy term, with an option to pay it either monthly, quarterly, half-yearly or yearly. There is no cap on the amount they pay as premium, with this decided by the sum assured opted by an individual.


    Individuals can opt for the Premium Waiver Benefit Rider, which essentially waives off all future premiums in the event of death of subscriber (the person who pays the premium).

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    GST of 18% is applicable on life insurance effective from the 1st of July, 2017

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