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.
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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. If you’re searching for the best LIC child plan in 2025, here’s a complete breakdown of the top options, features, and benefits.
Key Highlights
- LIC Jeevan Tarun and LIC New Children’s Money Back Plan are the two best LIC child plans available in 2025.
- LIC child plans offer financial protection and future savings for education and major milestones.
- Payouts include survival benefits, maturity benefits, and bonuses.
- Parents and grandparents can purchase these plans for children aged 0–12 years.
- Premiums qualify for tax deductions under Section 80C; payouts may be tax-exempt under Section 10(10D).
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.
- These plans offer either a lump sum or regular payouts, helping parents pool funds for their child's future expenses.
- In the event of the death of the policyholder during the life of the policy, these plans provide financial security for the child through death benefits.
- Some of the LIC child plans include the LIC New Children’s Money Back Plan and LIC Jeevan Tarun Plan.
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 age 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 the financial security of your child.
- 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 above:
1. LIC Jeevan Tarun Plan
- Minimum Sum Assured: Rs.75,000
- Maximum Sum Assured: None
- Minimum Age: 90 days (3 months)
- Maximum Age: 12 years
- Maximum Maturity Age: 25 years
- Policy Term: [25 – Age at entry] in years
- Premium Paying Term: [20 – Age at entry] in years
2. LIC New Children’s Money Back Plan
- Minimum Sum Assured: Rs.1,00,000
- Maximum Sum Assured: None
- Minimum Age: 0 years
- Maximum Age: 12 years
- Policy Term: [25 – Age at entry] in years
- Premium Paying Term: [25 – Age at entry] in years
Benefits of LIC Child Plans
Here is what makes LIC child plans beneficial for long-term financial planning:
- An essential feature in every LIC child plan is that it provides insurance benefits to a child even if their parent dies before paying the entire premium.
- Insurance premiums paid are eligible for tax exemption under Section 80C of the Income Tax Act, and claim proceeds are exempt under Section 10(10D).
- Loans are available in selected LIC Education Plans for children, enabling parents to meet urgent educational expenses through loan facilities.
- Some plans offer a grace period where no benefits are paid. Life cover starts after this period, allowing for alignment with key milestones in a child's life.
- Participating in LIC Child Plans may help in earning bonuses based on the company's profit experience, including return bonuses and a termination bonus at the end of the plan.
How do I buy a LIC Child Plan?
You can conveniently buy these plans through LIC's official website. Below are the steps you need to follow:
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 your transaction via debit/credit card or net banking.
Step 7: You will receive your policy documents in your mail.
It should be noted that the 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.
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About the Author
Mayashree Acharya
Senior Content Writer
I am an advocate by profession and have a keen interest in writing. I write articles in various categories, from legal, business, personal finance, and investments to government schemes. I put words in a simplified manner and write easy-to-understand articles. Read more
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