The best LIC plan for children is generally LIC Jeevan Tarun for education-focused payouts between ages 20–25, while LIC New Children’s Money Back Plan is ideal for milestone-based payouts at ages 18, 20, and 22. Your choice depends on whether you prefer regular education support or structured money-back benefits.
LIC Child Plans: Types, Features and Benefits
LIC child plans help parents build a secure financial foundation for their child's future needs, especially higher education. These LIC child education plans offer savings, protection, and guaranteed payouts.
Key Highlights
- Eligibility: Parents or grandparents can secure these policies for children starting from 30 days up to 12 years of age.
- Coverage: Both plans require a minimum baseline investment with a Minimum Basic Sum Assured of ₹2,00,000.
- Protection: An optional Premium Waiver Benefit rider ensures that the policy remains fully active without further premium payments if the parent passes away.
- Procurement: These specific traditional child plans are strictly offline products and cannot be purchased online through the self-service portal.
- Returns: Payouts are structured as guaranteed milestone survival benefits, a final maturity corpus at age 25, and potential profit-driven bonuses.
What are LIC Child Plans?
Life Insurance Corporation (LIC) of India offers specialised child plans tailored to suit the financial needs of children and their future goals. These plans provide financial protection, savings and investment opportunities for children's education, marriage or other milestones.
- Payout Options:These plans offer either a lump sum or regular payouts, helping parents pool funds for their child's future expenses.
- Death Benefits: An optional Premium Waiver Benefit (PWB) Rider can be attached so that all future premiums are waived if the parent passes away, keeping the policy intact for the child.
What are the Different Types of LIC Child Plans?
Here are the top 2 LIC Child Plans for your children’s secured future:
1. LIC Jeevan Tarun Plan
Jeevan Tarun Plan is a unique insurance and savings option tailored for children, providing financial security and growth. The plan provides an annual survivor benefit from age 20 to 24, and the maturity of this scheme is at age 25. Policyholders can choose a percentage of the sum assured as an annual survivor benefit paid from the policy anniversary year.
- Death benefit: If the policyholder dies during the policy term, the nominee will receive the higher of 125% of the sum assured, 7 times the annual premium or a minimum of 105% of the total premium paid, along with any bonuses.
- Survival benefit: If the policyholder reaches 20 years, a certain percentage of the sum assured is given as survival benefit for the next 4 years of the policy term.
- Maturity benefit: If the policyholder survives the entire policy term, the remaining amount of the basic sum assured plus accrued bonuses is paid as a maturity benefit.
2. LIC New Children’s Money Back Plan
LIC's New Children's Money Back Plan caters to your child's future financial requirements, including higher education and marriage.
- It offers lifetime coverage for your child throughout the policy term and provides survival benefits at the ages of 18, 20 and 22, which is equivalent to 20% of the sum assured.
- After surviving the policy term, the maturity benefit includes 40% of the sum assured and reverse and final bonuses, if applicable. This participation insurance contributes to your child's financial security.
- In addition, optional additional insurance is available to increase the total sum insured. Parents or grandparents of children between the ages of 0 to 12 years can opt for this plan.
- Death benefits: If the life insured passes away during the life of the policy, the benefits are as follows:
- Termination before the start date of the risk: A refund of the premium will be paid (excluding extra premium, excess insurance and taxes, if any).
- Termination after the commencement date of risk: The sum assured will be paid on death, along with the final additional bonus awarded and the simple surrender bonus (if any). The sum insured in case of death is higher than the basic sum assured, 7 times the annual premium, or a minimum of 105% of the total premium paid.
- Survival benefits: If the insured survives to the age of 18, 20 or 20 years, 20% of the basic sum assured will be paid on each occasion.
- Maturity benefits: 40% of the principal sum assured will be paid on survival to the maturity date, along with the final additional bonus awarded and a simple surrender bonus (if any).
Eligibility Conditions and Other Restrictions
Here are the eligibility criteria for different LIC Child Plans that are mentioned abthe ove:
| Feature | LIC Jeevan Tarun Plan | LIC New Children’s Money Back Plan |
| Minimum Sum Assured | ₹2,00,000 | ₹2,00,000 |
| Maximum Sum Assured | No limit | No limit |
| Minimum Entry Age | 90 days (3 months) | 0 years |
| Maximum Entry Age | 12 years | 12 years |
| Maximum Maturity Age | 25 years | 25 years |
| Policy Term | (25 − Age at Entry) years | (25 − Age at Entry) years |
| Premium Paying Term | (20 − Age at Entry) years | (25 − Age at Entry) years |
Note: For children below 8 years, the insurance cover starts after 2 years from policy purchase or when the child turns 8, whichever comes first. For children aged 8 years or above, the risk cover starts immediately.
Benefits of LIC Child Plans
Here is what makes LIC child plans beneficial for long-term financial planning:
- Premium Waiver Benefit: If the parent or grandparent paying the premium passes away, future premiums are waived and the policy continues.
- Tax Benefits: Premiums paid may qualify for tax deductions, and the maturity/death benefits may be tax-free, subject to applicable tax laws.
- Loan Facility: Policyholders can take a loan against the policy after it gains a surrender value, usually after paying premiums for at least 2 years.
- Bonus Benefits: These plans are eligible for LIC bonuses, which can increase the overall payout at maturity.
How do I buy a LIC Child Plan?
You can conveniently buy these plans through LIC's official website:
Step 1: Go to the official website of LIC.
Step 2: Click on 'Products'.
Step 3: Under that, find ‘Insurance Plan’. Click on that.
Step 4: Choose ‘Money Back Plans’ and select ‘LIC New Children’s Moneyback Plan’.
Step 5: Enter the details and click ‘Submit’.
Step 6: Check the payable premium and make transaction via debit/credit card or net banking.
Step 7: The policy documents will arrive in the registered E-mail.
Note: LIC Jeevan Tarun Plan is not available for purchase online. To buy this policy, please visit the nearest LIC office or reach out to their customer care.
Final Word
LIC child plans remain one of the most reliable ways to secure a child’s education and future milestones. Whether you choose LIC Jeevan Tarun or the New Children’s Money Back Plan, both provide long-lasting financial protection, guaranteed payouts and tax benefits. As education costs continue to rise, investing early in a LIC child education plan ensures your child’s dreams are protected.
Frequently Asked Questions
Which plan is best for children in LIC?
What is the LIC child policy for 2026?
Which plan is best for the child's future?
Follow us on
Have a query?
Products
ITR Self Filing Service
CA Assisted Filing Service
Calculators
Income Tax Calculators
Financial Planning Calculators
Guides & Blogs
ITR Blogs
Capital Gains Guide
Other Income Guides
Deduction Guides
Market Trackers
Gold Prices
Silver Prices
TOP MUTUAL FUNDS
TOP AMCS
STOCK MARKET INFO
TOP MUTUAL FUNDS
Nippon India Large Cap Fund
Quant Flexi Cap Fund
Invesco India Mid Cap Fund
Parag Parikh Flexi Cap Fund
Nippon India Large Cap Fund
Motilal Oswal Midcap Fund
Nippon India Small Cap Fund
HDFC Large and Mid Cap Fund
ICICI Prudential Multicap Fund
SBI ELSS Tax Saver Fund
HDFC Balanced Advantage Fund
SBI Contra Fund
TOP AMCS
STOCK MARKET INFO
Cleartax is a product by Defmacro Software Pvt. Ltd.
ISO 27001
Data Center
SSL Certified Site
128-bit encryption